In recent months, the Red Sea has transformed from a major maritime passage to a battleground, with Houthis rebel attacks on cargo vessels threatening global commerce and regional stability. The sinking of the Rubymar on March 2, the first vessel lost to Houthi attacks since November 2023, has caused environmental hazards and raised concerns about the security of this vital trade route. While Houthi attacks have introduced complexity and risk, their impact on commerce may be diminishing. Although sustained elevated container spot rates impose costs on shippers and consumers, benefiting container lines, the Drewry World Container Index Global Composite price has dropped more than 10% since late January, suggesting a potential easing of trade disruptions. (See FreightWaves, “The Houthis sank a ship. But their attacks may be less disruptive for now” Joe Antoshak, 3/5/2024)

Mexico largest trading partner with U.S.

- Canada No.2 at $773 Billion

- China No.3 at $575 Billion

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The U.S. Coast Guard is implementing new cyber-risk management requirements for owners and operators of over 200 Chinese-made container cranes at U.S. ports. This move aims to mitigate the risk of China spying on America's domestic supply chains. China-manufactured STS gantry cranes constitute almost 80% of such cranes at U.S. ports and can be controlled, serviced, and programmed remotely, making them susceptible to exploitation. The Coast Guard emphasizes the need for additional measures to prevent security incidents in the national transportation system, considering the prevalence of these cranes, intelligence on China's interest in disrupting U.S. critical infrastructure, and the inherent vulnerabilities for remote access and control. (See FreightWaves,“ US targets Chinese-made container cranes in spy crackdown” by John Gallagher, 2/21/2024)

Despite concerns about the dry season in Panama impacting trade through the Panama Canal, the situation isn't as grim as initially feared. Following a wetter-than-expected November, daily transits increased in January, with 24 transits forecasted, up from the previous estimate of 20. In fiscal year 2023, 12,638 vessels crossed the canal, averaging 34 oceangoing vessels daily. However, for the current fiscal year 2024, 3,233 transits occurred so far, mainly Panamax vessels, indicating a run rate of 9,700 vessels for this year, 23% lower than the throughput in fiscal year 2023. (See more at FreightWaves, “Water level projections threaten future Panama Canal transits” Tony Mulvey, 2/8/2024)

MOBILITAS Group announced today that it has acquired 100% of the British group Santa Fe Holdings Limited, headquartered in London, parent Company of Santa Fe Relocation and Sanelo. Samuel Mergui, a member of the MOBILITAS Group Management Board, will take over as CEO of Santa Fe Holding Limited. (See full Press Release at Read More)

Recent U.S. and British strikes on Houthi targets in Yemen have intensified concerns about container shipping in the Red Sea. The crisis has prompted shippers to seek alternative routes, leading to a 90% decline in container ship volumes passing through the Suez Canal. China-Europe rates surged by 260% since the start of 2024, with Drewry World Container Index indicating a nearly 200% spike in rates from Shanghai to Rotterdam. Despite the rising tensions and military actions, rates are starting to decline, with the Drewry Maritime Financial Research team anticipating oversupply to pull freight rates below breakeven, highlighting the uncertain and volatile nature of Red Sea shipping. (See FreightWaves, “Red Sea turmoil drives Chinese exporters to rail …” Michael Rudolph, 2/5/2024)