Shipping Disruptions Impacting Global Trade – Report Summary

Key Disruptions Identified

1. Low Water Levels at the Panama Canal

• Water shortages have reduced the depth and capacity of the Panama Canal.

• Resulted in restrictions on vessel volume and weight.

• This has caused significant scheduling bottlenecks and rerouting for global container traffic.

2. Houthi Rebel Attacks in the Red Sea

• Escalation in attacks on commercial vessels.

• Led to a drastic diversion of vessels away from the Red Sea and Suez Canal route.

• Ships are now rerouting via the Cape of Good Hope (southern tip of Africa), significantly increasing transit time and costs.

3. Geopolitical & Technological Disruptions

• Ships in the Strait of Hormuz experienced GPS signal disruptions, raising security and navigational concerns.

• The Red Sea, Persian Gulf, and Baltic regions are also affected by similar incidents.

Consequences on Global Trade

• Delays & Congestion:

• Increased waiting times for passage and berthing.

• Port congestions due to out-of-sequence ship arrivals.

• Cost Implications:

• Spike in global shipping costs due to rerouting, fuel consumption, and insurance premiums.

• Especially affected: Asia-Europe and US-East Coast trade routes.

• Export & Supply Chain Impact:

• July 2024 saw major disruptions in export volumes.

• Supply chains were delayed, especially for time-sensitive cargo (e.g., perishables, electronics).

Reported Incidents

• Since July 2024: Over 5,500 similar incidents recorded globally.

• Disruptions span from navigational threats to direct attacks and natural constraints.

✅ Recommendations for Exporters

1. Reforecast lead times for all shipments, especially Europe and U.S. East Coast-bound.

2. Negotiate split shipments or air freight for high-value or high-risk perishables.

3. Build buffer stock in destination cold storages (if available).

4. Insure cargo well, including delay and spoilage clauses.

5. Communicate proactively with clients about updated ETAs and rerouting.

6. Work with shipping lines offering guaranteed reefer prioritization.

Factor	Change	Effect on Agri/Fruit Shipment
Transit Time	+7 to 14 days	Higher perishability risk, market entry delays
Freight Cost	+15-40%	Squeezed margins, renegotiation needed with buyers
Reefer Availability	Tight	Book earlier; consider premium reefer slots
Shipping Routes	Diversion via Cape	Monitor vessel routes closely and update importers