Red Sea Crisis Continues | Logistics Cost Increase Analysis

Red Sea crisis since late 2023 continues to impact international logistics.

Impact Analysis

• Extended Transit: Detour via Cape adds 10-15 days
• Tight Capacity: Longer transit reduces effective capacity
• Rising Costs: Fuel and time costs both increase
• Transit Fluctuations: Schedules may change

Impact by Route

1. Europe routes: Most affected, detour unavoidable
2. Mediterranean routes: Some ports need detour
3. US East routes: Some impact
4. US West routes: Minimal impact, normal passage

Recommendations

De Zong Logistics advises:

• US West: Choose Matson for stability
• Europe: Consider China-Europe railway
• Urgent cargo: Choose air freight
• Plan ahead with extra buffer time