International Shipping Updates: August 2024

Recent developments in the Red Sea and surrounding waterways suggest that the threat to international shipping from Yemen’s Houthi militants is increasing, with attacks growing in scope and precision, U.N. Special Envoy to Yemen Hans Grundberg told the U.N. Security Council on Tuesday, July 23.

Grundberg warned of a real danger of a devastating regional escalation following new Houthi attacks on commercial shipping. The Houthi attacks on Israel and July 20 Israeli retaliatory strikes on Yemen’s port of Hodeidah represent “a new and dangerous level” of violence, Grundberg said.

Since November, international shipping has been disrupted as many vessels are avoiding the Red Sea route to the Suez Canal due to Houthi attacks. Detours around Africa add 10 to 12 days per trip, resulting in significant cost increases and environmental impact.

“It is alarming that there are no signs of de-escalation, let alone a solution.”

Cyber Attacks Have Been on the Rise

In a recent report by The Financial Times, researchers at the Netherlands’ NHL Stenden University of Applied Sciences found at least 64  cyber-attacks were perpetrated upon shipowners, ports, and other maritime groups in 2023. This marked a dramatic increase from the previous year.

Shipping experts have warned that  there needs to be better preparation for online piracy.

“IT spend in the maritime sector is pretty low,” said Stephen McCombie, a maritime IT security professor at NHL Stenden. “[Shipowners] are looking for people with maritime knowledge and cyber security knowledge [but] that is a very small group.”

The industry is already reeling from physical threats to shipping from rising geopolitical tensions. And the increasing digitization of ships, combined with advancing internet capabilities while at sea, will continue to leave ships vulnerable to cyberattacks unless cyber security is strengthened.

Shipping Companies Team Up with Labor Unions, Port Owners to Affect Supply Chain Legislation

Labor unions, maritime shipping interests, and other supply chain businesses have formed a new trade group to push for more domestic infrastructure investment to safeguard the supply chain.

The group was inspired by the supply chain issues that followed the COVID-19 pandemic. This showed the need for interconnectivity of all freight segments. They also mentioned the recent CrowdStrike IT outage, which  still impacts air freight, as a more recent example of the need for legislative action.

“There’s been a lot of talk about the supply chain and its importance over the past few years, but policy has certainly not met the moment,” said Steven Hussain, senior vice president of government affairs at Prologis, and Chair of the council. “Effective policy should include all facets of the supply chain. Right now, the policy only addresses parts like ports or just trucking. When you create a policy for one entity, that policy could adversely impact another supply chain participant. There needs to be education on the interconnectivity of the supply chain.”

The group will focus on educating government officials on the impact of proposed legislation.

 At Interstate International, we understand supply chain disruption’s challenges and pain points. That is why we provide tailored solutions…to help your business thrive. Follow us on LinkedIn for more international shipping news and trends.