The impact of the international situation on shipping

The Red Sea is located at the junction of the two continents, Asia and Africa. Its southern end is connected to the Arabian Sea and the Indian Ocean through the Bab el-Mandeb Strait, and its northern end is connected to the Mediterranean Sea and the Atlantic Ocean through the Suez Canal. The Suez Canal was built and opened to navigation in 1869. It is a sea-level waterway that runs through the Isthmus of Suez in Egypt, connects the Mediterranean Sea with the Red Sea, and provides the shortest route from Europe to the lands near the Indian Ocean and the Western Pacific. It is one of the most heavily used routes in the world. It is also the boundary between Asia and Africa and the main channel for people from Asia to Africa and Europe. The canal runs from Port Said in the north to the city of Suez in the south, with a length of 190 kilometers. It tunnels from the north of Port Said into the Mediterranean Sea and ends at the south of Suez.

The Suez Canal is located north of the Red Sea and connects the Mediterranean Sea. It is the fastest sea route between Asia and Europe. About 15% of the world's maritime trade passes through it, including nearly 30% of container trade. Affected by the security situation in the Red Sea, as of the morning of the 21st, 158 merchant ships had chosen to avoid this route.

The international shipping channel from the Suez Canal to the Red Sea guards the key passage between Asia, Africa and Europe, and is one of the busiest waterways in the world. The Bab el-Mandeb Strait is located at the southern end of the Red Sea, connecting the Red Sea and the Gulf of Aden, and is an important gateway for ships traveling to and from the Indian Ocean. It is the only place that the Atlantic Ocean must pass through and its strategic position is very important. The International Chamber of Shipping has warned that cargo ships avoiding the Suez Canal and detouring around the Cape of Good Hope at the southwest tip of Africa will mean increased navigation costs, longer shipping days, and corresponding delays in delivery times.

At present, due to the impact of the Red Sea incident, our European shipping companies will go around Africa to the Cape of Good Hope. The shipping schedule will increase by about 10-12 days. European shipping prices may also rise in January. Please understand.