Accepted: 14 February 2024 / Published online: 20 February 2024 | Theo Notteboom, Hercules Haralambides, Kevin Cullinane
The Red Sea crisis, triggered by Houthi rebels' attacks on international shipping in November 2023, has significantly impacted vessel operations, shipping networks, and global supply chains. The crisis, which escalated due to the ongoing conflict between Israel and Hamas, led to the suspension of Red Sea operations by major shipping lines and the rerouting of vessels via the Cape of Good Hope. This rerouting increased sailing distances and times, causing logistical challenges and higher costs. The crisis also affected freight rates, with spot rates surging and long-term contracts potentially being impacted. Additionally, it raised concerns about box availability and supply chain resilience, particularly for industries relying on just-in-time (JIT) and make-to-order (MTO) production systems. The crisis has prompted shippers to explore alternative routes and transport modes, such as overland rail services and combined air-sea transport. The long-term implications of the crisis remain uncertain, but it has highlighted the need for greater supply chain resilience and the potential for structural adjustments in logistics and shipping routes.The Red Sea crisis, triggered by Houthi rebels' attacks on international shipping in November 2023, has significantly impacted vessel operations, shipping networks, and global supply chains. The crisis, which escalated due to the ongoing conflict between Israel and Hamas, led to the suspension of Red Sea operations by major shipping lines and the rerouting of vessels via the Cape of Good Hope. This rerouting increased sailing distances and times, causing logistical challenges and higher costs. The crisis also affected freight rates, with spot rates surging and long-term contracts potentially being impacted. Additionally, it raised concerns about box availability and supply chain resilience, particularly for industries relying on just-in-time (JIT) and make-to-order (MTO) production systems. The crisis has prompted shippers to explore alternative routes and transport modes, such as overland rail services and combined air-sea transport. The long-term implications of the crisis remain uncertain, but it has highlighted the need for greater supply chain resilience and the potential for structural adjustments in logistics and shipping routes.