Red Sea – A Vital Artery Under Threat
The Red Sea is a critical shipping lane connecting Asia and Europe, shortening maritime routes by 10–14 days compared to circumnavigating Africa. However, since November 2023, when Houthi forces in Yemen began attacking commercial vessels, security in the region has become increasingly volatile. More than 90 attacks have been recorded, forcing businesses to continuously reassess their transport routes.
Even though the Houthis once announced a partial suspension of attacks in early 2025, new incidents have still occurred—for example, the sinking of the cargo vessels Magic Seas and Eternity C in July. This demonstrates that risks cannot yet be fully eliminated.
Shipping Lines’ Dilemma: Time or Cost?
In this context, maritime transport companies are facing two major choices:
- Continue via the Suez Canal: Maintain shorter delivery times, but face security risks, rising insurance premiums, and potential delays due to unforeseen incidents.
- Reroute via the Cape of Good Hope: A safer option, but it extends transit times by 10–14 days, increases fuel and labor costs by 30–40%, and directly impacts freight rates and competitiveness.
This presents a difficult equation not only for shipowners and charterers but also for import–export businesses.
“Licenses” from the Houthis – A Temporary Fix
Some shipowners have sought to obtain “licenses” from the Houthi forces through the Humanitarian Operations Coordination Center (HOCC). HOCC can issue alerts and guidance for vessels seeking safe passage. However, this approach carries significant legal risks, does not guarantee absolute safety, and is unlikely to serve as a long-term solution for the entire industry.
Impact on Supply Chains and Freight Rates
When the Red Sea route is disrupted, the entire global supply chain is affected. Cargo faces potential delays, freight rates increase, and the cost of importing raw materials, consumer goods, and even retail prices is impacted. Businesses need to proactively develop contingency plans, stockpile goods, or combine different modes of transportation to minimize risks.
Solutions from Dolphin Sea Air Services Corp.
In the face of ongoing disruptions, Dolphin Sea Air stands by its customers to optimize routes, ensure smooth customs clearance, and guarantee safe transportation. We provide comprehensive logistics solutions, including:
- Assessing and selecting the most suitable transport routes.
- Combining multimodal transport to shorten lead times.
- Advising on customs declarations and preparing accurate documentation to minimize potential risks.
- Continuously updating the Red Sea situation and sharing recommendations from international authorities.
At Dolphin Sea Air, we understand that every transport decision directly impacts our customers’ costs and business performance. We are committed to delivering optimal solutions that give businesses peace of mind on every journey—even when facing the “big waves” of global trade.
Dolphin Sea Air Services Corp.
Việt Nam
English
Japan
Korea
China
