Situation in Red Sea Escalates

The situation in the Red Sea continues to escalate. Overnight US and UK warships and aircrafts launched waves of missiles at Iranian-backed Houthi rebels in Yemen as retaliation for attacking carrier vessels in the Red Sea. It is yet to be determined how the Houthi will react.

These recent events seem to have impacted the steamship lines. AIS vessel trackers show 16 vessels have made U-turns since the attack. Satellites show the vessels are either in transit away from the area or are in a holding position. We continue to be in a period of uncertainty, and the additional emergency surcharges from the carriers are still in play.

As reported earlier, we are working diligently with our carrier relationships to mitigate these surcharges as much as possible, and will continue the pressure to cancel any charges for cargo that is not moving through the affected area. As we continue to work to find solutions for all of our contracts, please be aware of the possibility of increased costs in the coming weeks.