FIATA highlighted the recent developments in the Red Sea as a reminder of the importance of building resilience in global supply chains and ensuring appropriate monitoring to address new challenges and future crises. The organization encourages governments and all supply chain stakeholders to strengthen collaboration and dialogue on a global level to facilitate a coordinated approach to finding and implementing solutions.
The global nature of maritime supply chains requires consistent monitoring and action, as disruptions affect many different stakeholders worldwide. FIATA noted the US Federal Maritime Commission’s (FMC) recent announcement to hold a public hearing to examine shipping conditions in the Red Sea, particularly the implementation of surcharges, which it is carefully monitoring under FMC rules.
FIATA supports the International Maritime Organization (IMO) and the United Nations Security Council’s Resolution 2722 (2024), which affirms that the exercise of navigational rights and freedom by merchant vessels under international law must be respected. FIATA welcomed the comments of IMO Secretary-General Arsenio Dominguez, who called for caution and restraint to avoid further escalation and emphasized the IMO’s continued work to enhance the safe and secure transit of vessels through the Red Sea. FIATA also underscored the importance of closely monitoring the situation in collaboration with Member States and industry partners.
The current situation requires careful management to ensure the fluidity and global connectivity of maritime supply chains, as well as safety and security for the protection of human life. FIATA stated that global supply chains are crucial in meeting the needs of the world’s populations and are vital contributors to economic growth. If the situation is not managed appropriately, the current diversions in the maritime supply chain pose challenges to access, which will have significant repercussions for consumers and economies worldwide, particularly in developing countries.
FIATA also noted that increased freight rates have been compounded by high additional surcharges imposed not just on affected routes but also on containers in unaffected destinations such as the North Atlantic. Concerns have been raised about the lack of information on the content of these surcharges, with many instances of total fees being invoiced “all in” without itemization of their various components.
FIATA urges shipping lines to exercise care in imposing surcharges, which are of an “unprecedented magnitude,” according to Prof. Christa Sys, Professor at the Department of Transport and Regional Economics at the University of Antwerp. In discussions with FIATA, Prof. Sys observed an incongruence between the proportion of the surcharges levied and the actual costs incurred in rerouting ships away from the Suez Canal. She noted that bunker charges have remained stable and rerouted ships would not be subject to the Suez Canal toll charges.
Prof. Sys calculated that if a container ship with a capacity of 20,000 TEU needs 250 tonnes of low-sulfur bunker oil per day, the bunker costs to sail through the Suez Canal would be around USD 2.5 million. However, if it circumnavigates away from the Suez Canal, the bunker costs rise to around USD 3.5 million, but the ship would not be subject to the Suez Canal toll charges, which would be roughly USD 700,000 to USD 800,000 based on a 20,000 TEU vessel with 15,000 loaded containers onboard.
