Industry Update – February 2025

Attention: Shipping Manager

 

Situation in Middle East

• Red Sea Ceasefire & Developments

After a lull in Houthi attacks this month, suggestions are that they may resume, despite the Gaza ceasefire agreement announced between Israel and Hamas.
Experts speculate that the Red Sea and Suez Canal could only become a viable route if the war in Gaza ends, as the effectiveness of their attacks has given the Houthis leverage over world trade, which they may not be willing to surrender.
While it was reported earlier that some carriers could be eyeing a return for the Red Sea route, this is not expected to be until safety is assured.
Additionally, returning too early would see extreme disruption to networks and with the amount of time it took to achieve stability for diversions around the Cape of Good Hope, carriers are cautious of an immediate return.
When it becomes absolutely clear that there is no more risk, competitive pressures will prompt carriers to start using the Suez Canal again.
It is uncertain when carriers will return to Suez routing, with some experts predicting it could be as early as late February and some predicting as late as August.

(Source: Loadstar)

 

Situation in USA/Canada

• Trade Tensions in North America

The latest tariff battle between the U.S., Canada, and Mexico is putting strain on the fragile global supply chain, with increasing costs for business and potential inflation pressures worldwide.
Prolonged trade hostilities could slow global economic growth, undermining business confidence and investment.
While Australia is not directly involved, the economic consequences could be significant. Experts say uncertainty in global trade could place pressure on the Australian share market and currency.
It’s also warned that disruptions to trade flows could impact Australian exports in key sectors like mining and agriculture.

(Source: Freight & Trade Alliance)

 

• Canada Rail Strike Averted

Canadian National and the International Brotherhood of Electrical Workers of Canada have reached a tentative agreement on a new four-year contract, averting a strike that was slated to begin on 28 January.
The union represents approximately 750 employees across Canada. They have been working without a contract since Dec. 31, 2024.
The union had previously issued a 72-hour strike notice last weekend.

(Source: Freightwaves)

 

We will keep you updated with any further information.

 

Regards,