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CONSEQUENCES OF THE INCIDENT IN THE SUEZ CANAL

Due to the situation in Suez Channel we already see/expect following consequences:

 

* so far one of container lines have already declared about intentions not to continue voyage (from China to Ukraine) and to leave containers destined to Ukraine in Jeddah port. Vessel will change its voyage and turn back to Far East. Prospects for subject containers to arrive Ukraine so far are rather cloudy;

 

* Ukraine ports will again face shortage of empty containers and space for export shipments – as fact raise of rates for export flows;

 

* container lines will have to look for alternative solutions – maybe directing their voyages via Cape of Good Hope – as fact raise of rates for both import/export flows;

 

* prospects for situation to be stabilized quickly in Suez Channel are rather depressing. It been declared that as best case scenario it would take about 10-14 days for channel to be opened again. After that it will take time for current line of blocked vessels to move forward first;

 

Basis above said we are offering to our customers to be very accurate with fixing forwarding contracts/terms of arrival since situation is very unpredictable and container lines can declare about rapid rates/transit time increase any minute basing on current circumstances.

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