Disruptions to be expected in maritime transport in 2024
The recent conflicts in the Red Sea have caused major disruptions for global shippers of critical goods. However, this instability is not the only challenge that major carriers will face in this new year 2024.
Major Issues for Maritime Transport
Giant companies such as Maersk are warning of potential disruptions in a vital sector that handles nearly 90% of global trade. These disruptions include ongoing wars, extreme weather conditions affecting key routes like the Panama Canal, resulting in delays in ship schedules. These malfunctions will impact giant container ships, oil tankers, and other cargo carriers such as automobiles, causing delays and additional costs.
Impacts on Businesses
Companies like Walmart, IKEA, Amazon, Nestlé, and Lidl will suffer financial consequences with delivery delays and increased costs. The CEO of Basic Fun, a company shipping toys from China to Europe and the US, highlights this changing new reality.
Risks for 2024
Imminent risks include the extension of conflicts from the Red Sea to the Persian Gulf, affecting oil shipments, and China-Taiwan tensions that could impact key trade routes. Additionally, the conflict in Ukraine continues to disrupt grain trade since the Russian invasion in 2022.
Actions Taken and Consequences
Maritime companies such as Maersk have diverted ships from the Red Sea to avoid attacks, disrupting a vital shortcut between Asia and Europe via the Suez Canal. Fuel costs for shipowners have increased, leading to price hikes for consumers.
Impact of Natural Phenomena
Violent weather phenomena, such as drought in Brazil and excessive rainfall, are prolonging delays at the Paranagua port, affecting the shipment of soybeans and other goods.
Conclusion
Geopolitical tensions and natural phenomena pose major challenges for maritime transport in 2024, resulting in higher costs, delays, and disruptions in global trade.