Ongoing attacks on commercial shipping in the Red Sea are forcing major container lines to divert vessels around Africa, significantly impacting Australian supply chains.
Current Situation
Route Changes
- Most Europe-Asia services now routing via Cape of Good Hope
- Transit times extended by 10-14 days
- Container capacity effectively reduced
- Equipment repositioning challenges increasing
Cost Impact
- Freight rates: Up 200-300% on affected routes
- Surcharges: War risk and congestion surcharges applied
- Insurance: Premiums increased for regional transit
Australian Impact
Affected Trade Lanes
- Europe to Australia: +12-15 days transit
- Mediterranean to Australia: +14-18 days transit
- Middle East to Australia: Some diversions, +5-8 days
Product Categories Most Affected
- European automotive parts
- Italian and French wines
- UK consumer goods
- Mediterranean food products
Business Response
Australian importers are:
- Building additional safety stock
- Accelerating order placement
- Reviewing alternative sourcing options
- Adjusting customer delivery commitments
The situation remains fluid, with no clear resolution timeline in sight.