Shipping companies are now steering clear of the Suez Canal to avoid being attacked in the Red Sea. Large shipping companies are forced to send ships on longer routes, resulting in higher fuel costs and longer shipping times. As ocean freight pricing increases, higher costs will trickle down the supply chain and impact consumers. Shipping rates from Asia to North America’s East Coast have risen by 55%; while West Coast prices climbed 63%.
The significance of the Suez Canal in worldwide trade cannot be overstated, with approximately 25% to 30% of global container shipping volumes passing through the canal annually. The escalating conflict in Gaza poses a risk of expanding into a broader regional war, and this has the potential to further impact the global supply chain, causing major disruptions.
The impact will be felt across all international imports worldwide. Trade from Asia-to-Europe is most exposed to the Suez disruptions, and as much as 30% of shipments to the U.S. East Coast move via the canal.
What is HQO doing?
High Quality Organics, along with our network of trusted suppliers around the world, is working to release goods ahead of time to compensate for the extended shipping times. Additionally, to ensure products arrive on schedule, HQO is sourcing from regions of the world that do not require shipping through the Suez Canal.
HQO will continue to monitor the situation to ensure products are available for our customers during this challenging time.