Red Sea closure adds 10–14 days to GCC reefer inbounds
Maersk, MSC, CMA CGM and Hapag-Lloyd suspended Suez transits in mid-January 2024, rerouting via the Cape and pushing spot Shanghai → Jebel Ali rates up 70–80%. Jeddah-routed reefers were the most exposed.
- Shipping
- Reefer
- Red Sea
- Suez
What happened
Following Houthi attacks in the southern Red Sea, the four largest container carriers suspended Suez transits and rerouted services via the Cape of Good Hope, adding 10–14 days to Asia–GCC voyages.
Exposure
Inbound reefer containers — Brazilian beef, Vietnamese seafood, NZ dairy on ~35-day lead times discharging in Jeddah — were the worst hit. Spot Shanghai→Jebel Ali rose 70–80% in three weeks.
What to do
Ship non-perishable POs now at current rates. Route next reefers via the Indian Ocean to Khalifa or Dammam, not Jeddah, until carriers normalise rotations.
~18 days before the reefer gap hit retail service levels.
Plan for
Jeddah container traffic shifting structurally east
What's coming. Jeddah and King Abdullah vessel calls fell ~45% YoY after diversions began. Dammam and Khalifa absorbed the volume.
What to do. Open RFQs with Dammam and Khalifa providers (DP World, Hutchison) before Q2 contract auto-renewal.
Cocoa breaks $5,000/MT — first time since 1977
What's coming. ICCO projected a 374,000-ton 2023/24 deficit. Ghana and Côte d'Ivoire harvest down 30%+ on black-pod disease and weather.
What to do. Lock Ramadan/Eid 2024 chocolate confectionery contracts immediately before co-packers reprice.
Sources
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