Insights
Update N°4/2024
Important customer information on the current situation in global liner shipping
Dear Sir or Madam:
With this letter we would like to update you on the current situation in the worldwide shipping industry
including the impact to global supply chains and logistics networks. *)
Port of Baltimore, MD, USA closed after bridge collapse
As you may have taken from the news on the media, on 26/03/2024, the container vessel „Dali“ collided
with the Francis Scott Key Bridge in the port of Baltimore, Maryland (USA). The bridge, spanning the port
of Baltimore’s marine entrance, has completely collapsed and now blocks the entry and exit to/from the port
for ocean vessels. Tragically, six people are reported to be missing following the accident. The port of
Baltimore will not be accessible for ocean vessels until further notice. Vessels currently berthed in the port
are not able to depart until further notice.
Shipping lines affected by the port closure will now re-book cargo with destination Baltimore, MD to other
U.S. East Coast ports such as New York, NY and Norfolk, VA – subject to availability of capacities and in
coordination with the concerned customers. Cargo owners must take into account that delays and additional
expenses may arise from this situation. In case your shipment booked through Alfons Köster & Co. is
affected from the Baltimore port closure, we will inform you about possible alternative options on short
notice. At this moment, it is not known yet when the port of Baltimore will be open and accessible for vessels
again. We will keep you informed as usual with our regular service updates.
Red Sea and Gulf of Aden crisis
As of today, nearly all global shipping lines in the container-, RORO- and breakbulk trade avoid the transit
through the Red Sea and skip the Suez Canal en route from Asia to Europe (and v.v.), in response to armed
incidents with civil commercial ocean vessels which have occurred on regular basis.
The deviation around the Cape of Good Hope continues to have a direct and noticeable impact on vessel
schedules. In European ports, there have been massive vessel delays and cargo backlogs which can result
in additional expenses for temporary storage.
Unfortuately there are no prospects for an end of this crisis and a return to the standard routing through
Suez, at least not for such cargo originating or having its destination in countries beyond the Gulf of Aden
(the major trade capital Jeddah in Saudi Arabia and the country of Jordan have remained accessible via
the Mediterranean Sea and the Suez Canal as of today). Until further notice, customers need to take into
account that the reliability in the planning of seaborne transportation may be reduced.
Ocean freight - general market situation
The increased transit times for vessels travelling around the Cape have created a basis for new tariff
surcharges implemented by the shipping lines to compensate the additional costs on the trade between
Europe and Asia, but also on other trade lanes such as the Transatlantic trade from Europe to North
America. However, since the global booking situation and space demand has calmed down recently, freight
rates have lately very much stabilized on individually different levels.
In European ports, there has been some shortage of empty container equipment, caused by longer
turnaround times. In some cases, this can lead to additional expenses and delays in transport
arrangements. We recommend all customers to plan their ocean transports with a fair amount of time in
advance!
In the RORO shipping industry, a continuous shortage of vessel capacity and shipping space, paired with
a high demand, leads to very long waiting times for rolling and breakbulk cargoes to the United States and
North America. Depending on the destination, shippers need to calculate with a pre-notice of up to two
months for new bookings. On the RORO trade to Asia, the round-the-Cape deviation results in a reduced
sailing offer and limited capacities.
Panama Canal water level shortage
As mentioned in our last letter already, the Panama Canal has been facing a very low water level for several
months, being a cause for noticeable restrictions to the ocean traffic in the region. The number of vessels
allowed for transit per day has been reduced, resulting in backlogs and waiting times for vessels on both
ends. At the beginning of 2024, shipping lines trading through the Panama Canal have started to implement
Panama Canal Transit surcharges which are payable by shippers along with the freight.
We would like to ask you, our valued customers and business partners, for your understanding, that as
freight forwarders, we do not have any influence on the current geopolitical situation and the impact to
global supply chains, and shall not accept any liability for any consequences. Additional expenses resulting
from freight surcharges, storage fees, demurrage and detention, cargo deviation etc., which should result
from this situation, will be for account of the cargo (-owner). This applies both to new and existing transport
orders, also if these are covered with an existing freight agreement. Furthermore, delays and disruptions
need to be taken into account at any time.
The employees with all offices of the Alfons Köster & Co. group will continuously guarantee the high level
of service quality – also in difficult times. We all remain at your disposal for any question or request. We
are in daily contact with all involved parties along your transport chain and will keep you informed about
latest developments.
*) Copies of previous service information letters are available on request.
With kind regards,
your team of
Alfons Köster & Co. GmbH
Global Freight Logistics
Update N°3/2024
Important customer information on the current situation in global liner shipping
Dear Sir or Madam:
With this letter we would like to update you on the current situation in the worldwide shipping industry
including the impact to global supply chains and logistics networks. *)
Red Sea and Gulf of Aden crisis
As of today, nearly all global shipping lines in the container-, RORO- and breakbulk trade avoid the transit
through the Red Sea and skip the Suez Canal en route from Asia to Europe (and v.v.), in response to armed
incidents with civil commercial ocean vessels which have occurred nearly on a daily basis. The deviation
around the Cape of Good Hope, combined with much longer lead times, has become an every-day-standard
to both shippers, importers and forwarders, while the impact to global supply chains is significant.
Unfortuately there are no prospects for an end of this crisis and a return to the standard routing through
Suez, at least not for such cargo originating or having its destination in countries beyond the Gulf of Aden
(the major trade capital Jeddah in Saudi Arabia and the country of Jordan have remained accessible via
the Mediterranean Sea and the Suez Canal as of today). Until further notice, vessel delays caused by long
transit times and occupied berthing space in the ports need to be taken into account, same as a reduced
reliability in the planning of seaborne transportation.
In addition, most of the global cargo insurances have withdrawn from the coverage of war and strike risks
for their customers‘ cargo shipments transiting a regionally limited corridor in the Southern Red Sea and
the Gulf of Aden. It ranges from the Northern Eritrean border through to the border between Yemen and
Oman. This means a major challenge to both shippers and forwarders, as one has to safeguard that this
restricted area will not be transited with affected cargoes. Shipments with destination in the restricted area
cannot be insured against political risks for time being until futher notice.
Ocean freight - general market situation
The increased transit times for vessels travelling around the Cape have created a basis for new tariff
surcharges implemented by the shipping lines to compensate the additional costs on the trade between
Europe and Asia, but also on other trade lanes such as the Transatlantic trade from Europe to North
America. However, since the global booking situation and space demand has calmed down recently, freight
rates have lately very much stabilized on individually different levels.
Carriers on the Transatlantic Trade to the United States and Canada have announced General Rate
Increases on all freight agreements effective April 1st, 2024. In European ports, there has been some
shortage of empty container equipment, caused by longer turnaround times. In some cases, this can lead
to additional expenses and delays in transport arrangements. We recommend all customers to plan their
ocean transports with a fair amount of time in advance!
*) Copies of previous service information letters are available on request.
In the RORO shipping industry, a continuous shortage of vessel capacity and shipping space, paired with
a high demand, leads to very long waiting times for rolling and breakbulk cargoes to the United States and
North America. Depending on the destination, shippers need to calculate with a pre-notice of up to two
months for new bookings. On the RORO trade to Asia, the round-the-Cape deviation results in a reduced
sailing offer and limited capacities.
Panama Canal water level shortage
As mentioned in our last letter already, the Panama Canal has been facing a very low water level for several
months, being a cause for noticeable restrictions to the ocean traffic in the region. The number of vessels
allowed for transit per day has been reduced, resulting in backlogs and waiting times for vessels on both
ends. At the beginning of 2024, shipping lines trading through the Panama Canal have started to implement
Panama Canal Transit surcharges which are payable by shippers along with the freight.
Strike situation in Europe
For several months already, Germany and its European neighbour countries have been facing several
strike and protest actions initiated by rail and port workers, airport ground staff, flight attendants and
farmers. These actions have already had a remarkable impact on logistics operations and supply chains in
Europe, caused by delays and additional expenses, and will likely continue to have in the near future. The
situation is expected to remain tense and challenging until further notice.
We would like to ask you, our valued customers and business partners, for your understanding, that as
freight forwarders, we do not have any influence on the current geopolitical situation and the impact to
global supply chains, and shall not accept any liability for any consequences. Additional expenses resulting
from freight surcharges, storage fees, demurrage and detention, cargo deviation etc., which should result
from this situation, will be for account of the cargo (-owner). This applies both to new and existing transport
orders, also if these are covered with an existing freight agreement. Furthermore, delays and disruptions
need to be taken into account at any time.
The employees with all offices of the Alfons Köster & Co. group will continuously guarantee the high level
of service quality – also in difficult times. We all remain at your disposal for any question or request. We
are in daily contact with all involved parties along your transport chain and will keep you informed about
latest developments.
With kind regards,
your team of
Alfons Köster & Co. GmbH
Global Freight Logistics
Update N° 2/2024
Important customer information on the current situation in global liner shipping
Ladies and Gentlemen:
In our last letter dated January 4, 2024, we informed you in detail about the recent events in the Gulf of Aden and the Red Sea, and the resulting disruptions and impacts on shipping in this region.
The situation has grown in complexity and global significance in recent days, which is why we would like to bring you up to date with this update.
Almost all international liner shipping companies in container, RORO and general cargo traffic continue to avoid the Red Sea and the Suez Canal on the way from Asia to Europe and vice versa. Almost all ships in this shipping area take the detour around the Cape of Good Hope, which is currently leading to significantly longer transit times and therefore significant delays, schedule changes, a lack of empty containers and capacity bottlenecks. This massively affects the ability to plan sea transport reliably.
Access to the ports in the Red Sea, especially Jeddah in Saudi Arabia, is severely restricted from both Asia and Europe due to the diversion of east-west traffic. Some shipping companies already unload cargo for these ports in other safe ports outside the Red Sea, such as Dammar (Saudi Arabia) or Jubel Ali (UAE). You are entitled to do this in accordance with the B/L conditions.
In Asia, freight rates for sea transport to Europe are currently increasing many times over due to high demand. For outbound scheduled services from Europe to the Middle and Far East, the Indian subcontinent and Australia/Oceania, additional “emergency contribution” or “peak season” surcharges have been due since the beginning of the crisis in the Gulf of Aden (approx. USD 400-800 per TEU, sometimes more).
From February 2024, this effect will most likely spread to other shipping areas, such as transatlantic traffic to North and South America.
The liner shipping companies operating here have already published corresponding announcements according to which freight rates will be increased and “peak season” surcharges will be introduced on February 5th, 2024 (approx. USD 500-1000 per TEU, in some cases more). Increasing freight costs and delays can also be expected in all other shipping areas from February onwards due to the tense capacity situation.
In addition, the low water level in the Panama Canal has been causing significant disruption to shipping traffic for months. Passage through the canal is currently only possible for a limited number of ships per day, causing lengthy backlogs on both sides. Since the beginning of the year, additional surcharges have been due for the Panama Canal transit, which are billed to the shippers with the sea freight.
We ask our valued customers to understand that, as freight forwarders, we have no influence on the current geopolitical situation and the resulting effects on global supply chains and do not accept any liability for this. Additional costs from freight surcharges, storage fees, humiliation, detention, alternative and diversion costs, etc., which result from this situation, are borne by the goods and therefore the cargo owner. This applies to both new and existing transport orders, even if a freight agreement already exists for these orders. Delays in the transport process must also be accepted at any time.
The employees in all offices of the Alfons Köster & Co. Group continuously guarantee you a high quality of service - even in difficult times - and are available to answer all your inquiries at any time. We are in close contact with everyone involved along your transport chain on a daily basis and always keep you informed about the latest developments.
Your team of
Alfons Köster & Co. GmbH
Global Freight Logistics
Update N° 1/2024
Important customer information on the current situation in the Red Sea and the Gulf of Aden
Ladies and Gentlemen
As you have already learned from our letter of December 18, 2023 and certainly also from the media, there are currently repeated armed incidents with civilian merchant ships in the Gulf of Aden. This poses a real danger to people, ships and cargo moving on this important trade route between Asia and Europe.
In order to prevent risks from this danger, almost all important liner shipping companies in traffic between Asia, the Middle East and Europe have now rerouted their ships around the Cape of Good Hope in South Africa. This is already resulting in noticeable delays in ship arrivals and departures, as well as a partially unclear timetable situation for the coming weeks. This applies to container transport as well as RORO and conventional general cargo transport.
In order to compensate for the additional costs for the longer travel times, the shipping companies have introduced risk surcharges since the end of December 2023, which are billed to the shipper with the sea freight. The amount of these surcharges depends on the destination and shipping company and, depending on the port of destination, can be between USD 400.00 and 1,000.00 per TEU (20' standard unit), sometimes even more. In incoming traffic from Asia to Europe, a significant increase in sea freight rates can also be observed due to tight capacities before the Chinese New Year. Due to ships arriving late from Asia, a temporary shortage of empty containers for European exports is expected in the coming days.
Due to the diversion of services via the Cape route, the transport capacity to the ports in the Red Sea, especially to Jeddah (Saudi Arabia), is also significantly limited. Customers with shipments to the Red Sea must prepare for canceled ship departures, reduced capacities and likely rising freight costs in the short term. In individual cases, shipping companies can also exercise their right under the B/L conditions to unload cargo at sea with a port of destination in the Red Sea in a safe alternative port of their choice. The cargo owner is then responsible for forwarding the goods to the receiving location.
We would like to point out to our valued customers once again that as freight forwarders we have no influence on the current geopolitical situation and the resulting effects on global supply chains and do not accept any liability for this. Additional costs from freight surcharges, storage fees, demurrage, detention, alternative and diversion costs, etc. that result from this situation will be borne by the goods. Delays in the transport process must also be accepted at any time. We also ask you to treat media reporting on the shipping situation and price developments in a differentiated manner and with caution. Only your Alfons Köster contact person will provide you with binding information about your shipment(s) and possible extra costs or delays.
We are in close contact with everyone involved along your transport chain every day and always keep you informed.
Your team of
Alfons Köster & Co. GmbH
Global Freight Logistics
Update 4th quarter 2023
The Radio Hamburg “Listeners Help Children e.V. Donation Marathon 2023” once again raised a great sum of 680,110.49 euros! Not a given, especially this year, and absolutely great!
Guests at Radio-HH presenter Martin Putz on December 18, 2023: Florence Willoughby and Wolfgang Schmidt handed over a donation of EUR 5,000 on behalf of the management.