SHIPPING data analyst Sea-Intelligence has reported a major capacity drop as the Red Sea situation escalates.
Data suggests the decline in capacity is the second largest since reporting began in 2012 – second only to the Ever Given event.
The covid pandemic came in as the third-largest capacity decline in that period.
Sea-Intelligence broke down the numbers in its Trade Capacity Outlook report, comparing present changes with normal volatility and with market disruptions over the past few years.
“The Red Sea crisis has been going on for a month now, and the current service networks are clearly in flux, with a lot of uncertainty especially on the services going from Asia to Europe,” Sea-Intelligence CEO Alan Murphy said.
He explained capacity declines appear during Chinese New Year/Golden Week and are considered as normal market behaviour.
The Ever Given incident is recorded to have had the largest single impact so far, and but part of the incident overlapped with capacity changes due to Chinese New Year at the time.
Mr Murphy said the Red Sea crisis stands out in the data.
“With the Ever Given as the only exception, this is the largest single event – even larger than the early pandemic impact,” he said.
