• Holidays around the globe, especially in middle Eastern Countries, due to Eid holidays, produced lower new shipping transaction activities during the week.

• Russia/Ukraine war activity continued to impact Black Sea activity, especially for steel cargoes, liquid bulk, grain and fertilizers.

• The Middle East war between Hamas and Israel, with the resulting activity by Houthis and the Iranian military activity on Israel, brought further tensions in the Red Sea and the Suez Canal.

• Most ships are now avoiding Suez Canal and choosing to transit via Cape.

• Elsewhere, Panama Canal Authority declared that despite the rise in level of the waters, the authority was not going to review the draft limitations. This implies that most ships will have to go round the south of South America.

• Overall, we are observing longer transit times for ships due to Suez Canal and Panama Canal.

• Reacting to all above market dynamics, the Baltic Dry Index (BDI) maintained an upward trend starting 1st April to close of the week 12th April, closing at 1729 points.

• With supply chain disruptions above, importers have been busy looking for alternative sourcing of their raw materials and products from the traditional sources.

• After the initial supply chain shocks caused by the war in Russia-Ukraine, and Israel-Hamas, we now see customers settling down to longer transit times and alternative sourcing towards the East.

• JIT supply chains are overstretched and risky, so stocking is being witnessed again to guarantee safe stock levels.

• With longer transit times, supply for ships and supply for empty containers has been stretched. Supply for special equipment, such as temperature-controlled containers, and other specialized ships/equipment is much more affected.

• The port received 3 Ship to Shore Gantries (SSG’s), boosting container handling capability.

• On the bulk side, Lamu port is expecting a vessel laden with 60,107mts bulk fertilizer for Ethiopia, as the land locked country seeks more options for its supply chain due to the Red Sea situation.

• DP World took over officially this month, operations from berth 0 to berth 7.

Silvester M. Kututa
BA(Econ); MSc(Shipping); FICS