The Red Sea situation has recently intensified again, with Houthi attacks on commercial vessels occurring periodically and causing ongoing disruptions to international shipping. Multiple Ro-Ro and container shipping lines have announced adjustments to port calls or rerouting via the Cape of Good Hope, which will directly impact schedule reliability and transit times. SIDAJA LOGISTICS issues this risk alert to remind all customers to plan their shipments in advance.

1. Current Red Sea Situation Overview
Since the Houthis began attacking commercial ships in the Red Sea in November 2023, the situation has persisted for nearly a year. Although the multinational joint escort operation has reduced risks to some extent, attacks have not completely ceased, and waterway security remains uncertain. Since Q3 2026, the frequency of attacks has increased, leading more carriers to choose rerouting via the Cape of Good Hope rather than risk passage through the Suez Canal.

2. Carrier Response Measures
Facing persistent security risks, major carriers have adopted different response strategies:
① Full Cape of Good Hope Reroute: Some carriers have diverted all or most of their routes via the Cape of Good Hope, completely avoiding the Red Sea and Suez Canal.
② Selective Passage: Some carriers flexibly decide whether to transit the Suez Canal based on real-time safety assessments, leading to significant schedule volatility.
③ Adjusted Port Calls: Some carriers have revised their port call sequences in the Mediterranean and Middle East to reduce stops in high-risk areas.
④ Surcharge Imposition: Due to longer voyages and higher fuel costs from rerouting, most carriers have started imposing Red Sea reroute surcharges or emergency bunker surcharges.

3. Specific Impacts on Exports
The Red Sea situation affects Chinese exports in several key ways:
• Longer Transit Times: Rerouting via the Cape of Good Hope adds approximately 10–14 days compared to the Suez Canal route, significantly extending transit times to Europe and the Mediterranean.
• Higher Freight Rates: Fuel costs, insurance premiums, and reroute surcharges are driving rates up by approximately 15%–30%.
• Unstable Schedules: As carriers may adjust routes at any time, schedule reliability declines, making planning more difficult.
• Tighter Space: Rerouting extends vessel turnaround times, effectively reducing available capacity and making space even tighter.

4. Impact on Ro-Ro Shipping
The Red Sea situation has a particularly significant impact on Ro-Ro transport:
① Ro-Ro vessels sail at relatively slower speeds, so the time cost of rerouting via the Cape of Good Hope is higher than for container ships.
② Ro-Ro ships have more port calls, making route adjustments less flexible.
③ Insurance costs for high-value cargo such as automobiles and construction machinery have risen substantially.
④ Arrival times at some destination ports have been significantly delayed, with the longest delays exceeding 3 weeks.

5. SIDAJA Response Solutions
To address the challenges posed by the Red Sea situation, SIDAJA LOGISTICS has implemented multiple measures:
① Multi-Carrier Partnerships: Working with multiple carriers to flexibly select optimal route solutions based on the situation.
② Real-Time Tracking & Monitoring: Closely monitoring each vessel's status and promptly updating customers on position and estimated arrival times.
③ Alternative Route Options: Providing customers with multiple route choices, including direct sailings, transshipment options, and comparisons across different carriers.
④ Risk Early Warning System: A dedicated risk alert team notifies customers of the latest developments immediately.
⑤ Insurance Services: Offering special insurance coverage including war risk to protect customers' cargo.

6. Shipping Recommendations
During this exceptional period, we recommend that customers:
① Plan Ahead: Allow more transit time — at least 2–3 weeks of additional buffer compared to normal conditions.
② Book Early: Space is tight — we recommend confirming bookings 1–2 months in advance.
③ Purchase Insurance: Always ensure cargo is covered by insurance that includes war risk.
④ Stay in Communication: Maintain close contact with the SIDAJA team for the latest information.
⑤ Backup Plans: Research alternative routes and options in advance for contingency planning.