As previously reported, vessel movements via the Panama Canal have been significantly reduced due to ongoing draught conditions. Because of this, many ocean carriers began to re-route vessels that would normally move via the Panama Canal to transit via the Suez Canal, which runs through the Middle East. 

As of this past weekend, most ocean carriers have announced the suspension of service transiting the Suez Canal. This is a result of instability in the region, which included missile attacks last Friday by rebel groups on ships operated by MSC and Hapag Lloyd. Services are largely being re-routed from the Suez Canal to travel through the Cape of Good Hope in Africa, which will result in further increases to transit times. This situation is fluid and is subject to change; however, as a result of these significant developments, we can expect to see immediate impacts to ocean transit times and rates.

RIM is still able to move freight from Asia to US East Coast and Gulf Coast destinations via traditional all-water services; however, customers can expect increased transit times and potentially significant delays with these routings.

As such, RIM has prepared routing options to include, but are not limited to:

• The transloading of cargo at West Coast Ports to facilitate movement to all inland / coastal locations throughout the United States.
• Mini land bridge (MLB) via rail from US West Coast ports to East Coast Ports. (Traditional IPI services to interior points are still functioning as before; however, we expect these services will also experience delays due to port congestion and rail issues.) 
• Air freight alternatives to and from key gateways in order to expedite transit sensitive freight.

RIM is prepared to offer these and other routing alternatives to help relieve potential future service disruptions. We are continually assessing this situation and will keep you informed as the situation evolves. Please contact your RIM representative should you have any questions or need additional information.