East–West Trade Prepares for Rising Shipping Fees in 2024 as Routes Lengthen and Risks Surge

The Shipping Saga: The Red Sea and Suez Canal Send Major Lines on a Detour

Picture this: giant cargo ships, typically traversing the quick route through the Suez Canal, suddenly deciding the whole world is a bit more adventurous and opting for a longer, scenic—yet costly—journey around the Cape of Good Hope.

What’s Going On?

Houthi militants have been firing missiles into the Red Sea, making the waters feel less like a calm marquee and more like a red‑alert warning. As a result, big players such as CMA CGM, Hapag-Lloyd, Maersk, and Mediterranean Shipping Company (MSC) have all said, “Not today, Suez!” and have paused shipping through that narrow “water in a bottle.”

Meanwhile, the Panama Canal has been closed to multipurpose vessels (MPV) up to at least May, forcing them to take the much longer detour via the Cape of Good Hope and the Strait of Magellan.

Why the Delay Means Money‑Sauping

Extended routes now add a whopping 40% to shipping times—some estimates say anywhere between one to four extra weeks.
Each extra week on the line edges up into a higher cost per ton, and that translates to higher prices for goods worldwide.
Reacting traders and crews are already filling out their “anticipation” forms because they know that disruptions can ripple for months, not just days.

The Economics Behind the Roadblocks

From the viewpoint of shareholders, these disruptions are basically a mixed bag:

On one side, there’s the post‑COVID surge in trade, pushing assets up and giving a temporary boost.
On the other, there’s the risk that the canal’s primary revenue engine could grind down if traffic keeps sliding away.

“If the Suez traffic fork continues, the ripple will feel strongly in Cairo’s economy,” says Christian Roeloffs, CEO of Container xChange.

Will the “Ever‑Given” All‑Grown‑Up Behavior Resurface?

Beneath calmness lies the possibility that a near‑collision or a full block could happen again, and the lesson from the Ever Given trap of 2018 is still fresh in minds. So, the global shipping market is holding its breath.

Bottom Line for the Average Ship Owner

Feed the fuel, mind the extra time, remain flexible—and keep your crew’s good spirits up. If you crest this wave with a splash of humor, you’ll probably stay afloat no matter which channel you go through.

Potential impact on container shipping

Red Sea Shipping Delays Are Turning Israeli Imports into Turn‑Ups

Picture this: about 30 % of Israel’s goods arrive via the Red Sea on container ships that are booked a solid two to three months ahead of time. When those voyages get tug‑ged out, the lives of consumer products—think fresh fruit, battery‑powered gadgets, and that trendy athleisure lineup—shrink to just a couple of months. That means “I’ll never get the window back” is the new mantra for importers.

What Yoni Essakov, Israeli Chamber of Shipping executive, is saying

“If the trip gets postponed, products with a two‑to‑three‑month shelf life are effectively dead in the water.” Yoni drops that line like a punchline. The upshot?

Exporters must pump up inventory levels to guard against stock‑outs.
Costs jump: higher storage fees, spoilage losses, and a full beat-up on the profit margin.
Meanwhile, market rivals who can move faster start to win that hard‑earned edge.

The ripple effect

In a nutshell, delayed shipping means less “fast‑to‑market” time, which slams the launch clocks on everything from tech toys to seasonal apparel. Importers are left juggling higher prices and frantic stockpile juggling, while their competitors hop on a slicker path.