Two key supply chain gateways have recently encountered major geopolitical and environmental challenges.
13 February 2024
OIA Global sincerely values your trust, loyalty, and understanding during these challenging times. Our team is working to ensure timely and transparent communication, and we encourage you to contact your dedicated OIA representative for anything urgent. We continue to monitor the Suez Canal and Panama Canal disruptions.
The Panama Canal drought and Red Sea diversions have created a bottleneck on major East-West trade lanes. We reaffirm our unwavering commitment to keeping customers informed and providing innovative alternative solutions. Should you need guidance or support during these challenging times, please contact your designated OIA Global representative.
OIA’s innovative ocean freight solutions include a combination of established services and new expedited options for customers seeking shorter transit times. We offer several different options that serve as a strategic bypass of the Panama Canal and/or Suez Canal.
This service moves from Shanghai or Shenzhen origins to New York City and Atlanta destinations, moving through Chicago and Cleveland terminals.
• This service is ideal for customers who want to avoid the Panama Canal, or the lengthy Cape of Good Hope detour around the Red Sea.
Direct LCL services from over 28 ports in Asia to Jebel Ali* and Los Angeles**. From these airports, shipments have quick access to airports across Europe, Africa, and Central & South America.
*Ports with service to Jebel Ali include Bangkok, Busan, Chennai, Colombo, Ho Chi Minh, Hong Kong, Jakarta, Kaohsiung, Karachi, Mumbai, Ningbo, Port Klang, Qingdao, Shanghai, Shenzhen, Singapore, Tianjin, Tokyo.
**Ports with service to Los Angeles include Bangkok, Busan, Chennai, Colombo, Dalian, Guangzhou, Haiphong, Ho Chi Minh, Hong Kong, Jakarta, Kaohsiung, Karachi, Kobe, Manila, Mumbai, Nagoya, Ningbo, Pasir Gudang, Penang, Port Klang, Qingdao, Shanghai, Shenzhen, Singapore, Taipei, Tianjin, Tokyo, Xiamen.
We currently offer LCL sprint services for cargo moving from Europe and Asia to the United States.
The fastest alternative for FCL shipments moving Transatlantic Westbound to the U.S. West Coast is the land bridge solution transporting shipments between Europe* and the U.S. West Coast** through Halifax and Chicago.
*Europe origin and destinations include Antwerp, Liverpool, Hamburg, Dublin, Belfast, Gothenburg.
**U.S. West Coast origin and destinations include Seattle, Portland, San Francisco, Los Angeles, Denver.
For Transpacific Eastbound shipments to the U.S. East Coast, our Diamond service offers guaranteed space, equipment, and no delays moving through the Panama Canal.
Recently, supply chain operations at the Suez Canal and Panama Canal have encountered major geopolitical and environmental challenges. The resulting disruptions are having a profound impact on the global supply chain. Customers should expect persistent complications in these specific areas and ongoing disruption throughout the global network.
OIA Global is actively developing a comprehensive action plan to navigate these changes effectively. We are steadfast in our commitment to keep customers well-informed as the situations evolve, and our dedicated teams remain available to provide support and assistance. Please reach out to your OIA Global representative if you require any guidance or support during this challenging period.
The Panama Canal Authority (PCA) has implemented measures to increase transit slots and address the impacts of an unprecedented drought:
Despite these measures, daily capacity continues to drop.
Carriers are introducing premium services, surcharges, GRI, and vessel re-routing.
Bottlenecks in the canal have delayed shipments by 5-7 days, and re-routed ships via the Cape of Good Hope have delayed shipments by 10-14 days.
In November ‘23 Houthi rebels in Yemen began attacking cargo ships en route via the Suez Canal. This disruption prompted carriers to pause their Red Sea routes and instead take a longer journey around Africa’s Cape of Good Hope to ensure the safety of the crew, ship, and cargo.
Carriers are introducing GRI and PSS rates, creating new market conditions and force majeure surcharges, and adding more vessels to sustain longer routes around the Cape of Good Hope. All carriers are increasing ad-hoc and FAK rates.
FEWB services have delayed shipments for up to 10 days, while TPEB services have delayed shipments for up to 14 days. Shippers should also expect additional weather-related delays.