Press Room

Neolink Announcement – Red Sea Crisis Update – Impact on Global Trade and Shipping to Australia – 20.12.23

Dear Valued Neolink Customers,

I hope this message finds you well and you are all looking forward to spending some time with your families over the holidays.

We are reaching out to inform you about the recent developments in the Red Sea that may affect your shipments and global trade.

As many of you are aware, the Red Sea region has experienced heightened tensions over the past week, leading to a series of Houthi attacks on shipping vessels navigating through the Suez Canal. These unfortunate events have raised concerns about the safety and efficiency of one of the world's most critical maritime trade routes. Most of the worlds major shipping lines are now rerouting cargo around Africa via the Cape of Good Hope for Safety reasons, but this has inevitably created additional transit times and additional costs for the shipping lines.

At Neolink, we understand the vital role that smooth and secure shipping plays in your business operations. Therefore, we want to provide you with an overview of the current situation and its potential impact on your shipments to and from Australia.

Overview of the Red Sea Crisis:

The ongoing conflict in the Red Sea region has resulted in increased security risks, particularly in the vicinity of the Suez Canal. The Houthi attacks on shipping vessels have prompted heightened security measures and operational challenges for vessels transiting through this strategic waterway.

Impact on Shipping to Australia and Global Trade:

-Potential Delays: Due to the heightened security measures and the need for increased inspections, there may be delays in the transit time of shipments passing through the Suez Canal. This could affect the overall supply chain and delivery timelines.

- Alternative Routes: To mitigate potential disruptions, Neolink is actively exploring alternative shipping routes to ensure the smooth flow of goods to and from Australia on goods that are yet to departing or exporting to the EU. We are working closely with our partners and logistics experts to identify the most efficient and secure alternatives.

- Continuous Monitoring: Our team is closely monitoring the situation and will provide real-time updates as necessary. We remain committed to keeping you informed and minimizing any potential impact on your shipments. I highly recommend to all customers that if you do not have access, to sign up for Logixboard via our website where you can see your shipments on vessels in real time via the platform in addition to Neolink’s customer operations team being available.

What Neolink is Doing:

1.Dedicated Support: Our customer support team is available to address any concerns or queries you may have regarding your shipments. Feel free to reach out to us through the usual channels.

2.Proactive Planning: Neolink is proactively working on contingency plans to ensure that your shipments are routed efficiently, considering the evolving situation in the Red Sea region. If           you have an order with us or a shipment already departed that was planned to travel via the Suez from EU, the team will be taking a tailored approach and reaching out to you all one by one. If        you have any factory orders that are not in our system or our team are aware of, please reach out to us and let’s plan forward together as best as possible.

In addition to the above, many of you will also be aware of the issues plaguing Australian Ports at the moment due to the Union Strikes and Protected Industrial Action. We have seen the unloading time of vessels increase from 2 days average to 10+ days. Please take this into consideration in addition to the current crisis impacting the Red Sea. If you import from Europe, it is feasible certain shipments could experience some significant delays compared to a normal period where the Suez Canal is not closed, and we did not have Protected Industrial Action across Australia’s Port Terminals.

We understand that these circumstances may raise questions and concerns, but also ultimately create challenges to your supply chain. The team here at Neolink will be working through this time of the year (excluding public holiday) and are proactively this week still reaching out to our customers that are open to ensure we are getting factory orders in time, or planning to air freight where possible on any urgent cargo that could be impacted by these delays.

Rest assured, the entire team here at Neolink is committed to providing transparent communication and finding solutions to minimize any disruptions to your business, but these delays do need to be accounted for within your supply chain and we want to ensure you are empowered to make the best decisions for your business.

Thank you for your understanding and continued trust in Neolink. We will keep you updated on any significant developments and remain at your service for any assistance you may require.

Best regards,

Neolink Marketing Team