The Suez Canal crisis

The Suez Canal crisis: global logistical impact and recommendations for freight forwarders

Since the end of 2023, the Suez Canal has experienced a sharp drop in shipping traffic due to attacks by Houthi rebels in the Red Sea as a result of the conflict in Gaza. This situation has caused many shipping lines to decide to divert their vessels around the Cape of Good Hope, increasing transit times and operating costs.

In figures, canal traffic has fallen by more than 50%, and Egypt has lost up to $7 billion in toll revenues. This crisis is not a physical blockade like the one that occurred with the Ever Given in 2021, but a direct consequence of a persistent geopolitical threat in the region.

How does it affect international logistics?

The impact on the global logistics chain and freight forwarders is profound:

  1. Route diversion and increased lead times
    Sailing through southern Africa can mean up to 10 additional transit days on routes such as Asia-Europe. This affects delivery planning, stock and last mile logistics.
  2. Rising logistics costs
    Freight rates have risen by more than 60% on some routes, and insurance premiums have also increased due to the risk in the Red Sea area. This has an impact on the entire value chain.
  3. Port Congestion and Bottlenecks
    The massive diversion has resulted in increased traffic at alternative ports such as those in the western Mediterranean, causing delays and saturation at key terminals.
  4. Uncertain planning
    The geopolitical situation is unstable, forcing companies to maintain operational flexibility and anticipate possible scenarios of prolonged crisis.

Recommendations for companies and freight forwarders

  • Review routes and delivery times
    Consider logistics alternatives (multimodal, air or rail when feasible) and adapt delivery schedules.
  • Negotiate conditions in advance.
    Review contracts with shipping companies, customers and suppliers to include clauses that contemplate delays or extraordinary costs.
  • Strengthen communication with customers
    Transparently report on the status of shipments, estimated lead times and rate or service adjustments.
  • Seek specialized logistical support
    Having an operator with international experience allows you to make quicker decisions and avoid serious disruptions.

Conclusion

The Suez Canal crisis has highlighted the vulnerability of global trade to regional conflicts. Traffic diversion, high costs and operational uncertainty demand a strategic response from importers, exporters and freight forwarders.

As a forwarding company based in Barcelona with more than 50 years of experience, we are ready to help you minimize the impact, optimize your routes and maintain the continuity of your logistics chain in this changing context.

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