• Latest
  • Trending
  • All
  • Industry
  • Compliance
  • Global Trade
  • Industry
  • Sustainability & Ethics
  • Video
  • Security & Risk
Sedgwick: Shipping Faces Continued Challenges This Summer

Sedgwick: Shipping Faces Continued Challenges This Summer

07/10/2024
US Inflation Rises Slightly in May as Tariffs Influence Prices

US Inflation Rises Slightly in May as Tariffs Influence Prices

06/13/2025
Expanded U.S. Steel Tariffs to Include More Household Appliances

Expanded U.S. Steel Tariffs to Include More Household Appliances

06/13/2025
U.S. Expands 50% Tariffs to Imported Appliances Starting June 23

U.S. Expands 50% Tariffs to Imported Appliances Starting June 23

06/13/2025
Tariffs Raise Concerns Over Canned Food Prices

Tariffs Raise Concerns Over Canned Food Prices

06/13/2025
Consid Accelerates Digital Innovation Across Northern Europe with 700+ Clients and Growing Presence

Consid Nominated for the 2025 Go Global Awards

06/13/2025
Consid Accelerates Digital Innovation Across Northern Europe with 700+ Clients and Growing Presence

Consid Accelerates Digital Innovation Across Northern Europe with 700+ Clients and Growing Presence

06/13/2025
Indelox Service Private Limited Celebrates 25 Years of Excellence in Global Supply Chain Services

Indelox Service Private Limited Celebrates 25 Years of Excellence and Earns Nomination for Go Global Awards 2025

06/13/2025
Indelox Service Private Limited Celebrates 25 Years of Excellence in Global Supply Chain Services

Indelox Service Private Limited Celebrates 25 Years of Excellence in Global Supply Chain Services

06/13/2025
Map My Crop Transforms Global Agriculture with AI-Powered Geospatial Intelligence

Map My Crop Nominated for Go Global Awards 2025 for Outstanding Innovation in Agri-Tech

06/11/2025
Map My Crop Transforms Global Agriculture with AI-Powered Geospatial Intelligence

Map My Crop Transforms Global Agriculture with AI-Powered Geospatial Intelligence

06/11/2025
Artesana Receives Nomination for Go Global Awards 2025

Romania’s Leading Artisan Dairy Brand Artesana Celebrates International Growth and Innovation Milestones

06/11/2025
Artesana Receives Nomination for Go Global Awards 2025

Artesana Receives Nomination for Go Global Awards 2025

06/11/2025
supplychainreport
Friday, June 13, 2025
  • Home
  • Industry
    • Supply Chain
    • Logistics & Transportation
    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
    • Market Trends
    • Economic Indicators
    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
    • Import/Export Statistics
  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
    • ITC Featured Members
    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars
No Result
View All Result
supplychainreport
No Result
View All Result

Sedgwick: Shipping Faces Continued Challenges This Summer

by Daisy D.
07/10/2024
in Logistics & Transportation

Darin Miller, National Director for Marine at Sedgwick, provides an outlook for the shipping industry this summer amidst ongoing militant attacks on merchant vessels in the Red Sea.

The shipping industry has experienced significant disruptions over the past few years. COVID-19 severely impacted the sector and the global economy by reducing the number of available port staff and slowing cargo processing. Shipping lines had to reduce the number of operating ships, leading to container shortages and lengthy delays, which ultimately increased freight rates.

YOU MAY ALSO LIKE

Rich Freight Services Limited Elevates Global Logistics with Over a Decade of Excellence

Rich Freight Services Ltd Earns Nomination for Go Global Awards 2025

In 2021, the blockage of the Suez Canal, a critical freight route, further delayed the transportation of goods and significantly slowed trade between Europe, Asia, and the Middle East.

Recent months have seen additional disruptions due to militant attacks on merchant vessels in the Red Sea, linked to the Israel-Hamas conflict. Hundreds of commercial vessels have had to detour around the Cape of Good Hope near the southern tip of Africa to avoid attacks from Houthi rebels. Additionally, vulnerabilities were exposed following the collapse of the Francis Scott Key Bridge in Baltimore in March.

With ongoing conflict in the Red Sea and fragile global supply chains, the shipping industry is expected to face another turbulent summer. Darin Miller from Sedgwick, a global provider of risk, benefits, and integrated business solutions, describes the current situation.

“Container rates, which dropped last year, have now nearly doubled over the past six months from approximately $3,000 to $6,000,” he says. “These increased costs will inevitably be passed on to the end user.”

Miller notes that a significant factor driving this rate fluctuation is the disruption in the Red Sea, which forces reroutes around Africa and causes significant delays. This has led to container congestion in Asian ports, with some delays in Singapore extending up to a week.

“Even if the Middle Eastern turmoil were resolved today, it would still take months for shipping congestion and high container rates to stabilize, suggesting these conditions will persist throughout the summer.”

Miller also highlights that while the extended shipping timelines have a more direct impact on the UK, France, Northern Europe, and the Middle East, most deliveries to the West Coast of the US remain unaffected despite some delays due to Asian port congestion. He suggests that the US will likely experience “invisible inflation,” with increased costs impacting lower-value goods more than high-value items.

“Consumers buying from small businesses will feel the $3,000 container rate increase more acutely than those purchasing high-value items like iPhones,” he continues. “This discrepancy is partly because big-box retailers have ongoing contracts with container shipping lines at lower rates, whereas smaller businesses will face inflated rates to fulfill orders. Consequently, while big-box retailers might withstand these pressures, smaller retailers are at greater risk of lowered profitability.”

Your source for supply chain report news updates: The Supply Chain Report. For international trade insights and tools, head to ADAMftd.com.

#ShippingChallenges #Logistics #GlobalTrade #SupplyChainDisruption#SupplyChainNews

ShareTweet

Subscribe Our Newsletter

Share Your News

Whether it’s a groundbreaking achievement, a heartwarming tale, or an insightful perspective, we want to hear it. Share your news with us, and let’s amplify your voice in the digital symphony of stories.

Submit

A man is riding a bike on a hill.

The Supply Chain Report is your essential daily news website, serving as a trusted source for comprehensive coverage of the complex and ever-evolving global supply chain dynamics. Our expert team delves into the intricacies of international trade, manufacturing, logistics, importing, exporting, and supply chain management; providing in-depth analysis and up-to-date news on the latest trends, disruptions, and technological advancements affecting industries worldwide. From detailed reports on international trade through to insights into procurement strategies and inventory management, we offer valuable content that helps professionals stay informed and make knowledgeable decisions in a fast-paced market.

Each day, we bring you cutting-edge news and expert commentary that dissect significant international trade and supply chain issues Our coverage spans a wide array of sectors including manufacturing, retail, healthcare, food, consumer goods, and technology, ensuring that no matter your field, you have the strategic information needed to navigate the challenges and opportunities of today’s supply chain landscape. By synthesizing complex data and presenting actionable insights, The Supply Chain Report empowers business leaders, policymakers, and logistics professionals to optimize their operations and drive forward with confidence in an interconnected world.

Connect With Us

  • About
  • Events
  • Privacy Policy
  • Contact Us

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.

No Result
View All Result
  • Home
  • Industry
    • Supply Chain
    • Logistics & Transportation
    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
    • Market Trends
    • Economic Indicators
    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
    • Import/Export Statistics
  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
    • ITC Featured Members
    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.