With Chinese New Year almost upon us, our focus remains on moving goods ahead of widespread factory closures. The Gaza ceasefire, announced this week, is a hopeful step in the right direction for global shipping.

Chinese New Year (CNY) Closure

With Chinese New Year falling on 29th January 2025, businesses in China and Hong Kong are preparing for extended holiday closures lasting up to four weeks. Some factories have already started to close this week, putting the market under more pressure as businesses work to move goods ahead of the shutdowns.

Port and customs operations will also operate at reduced capacity during this period, adding further challenges to supply chain timelines. We are working closely with our colleagues overseas to ensure timely shipments where possible before the factory closures occur.

Blank Sailings Post-CNY

Carriers have announced additional blank sailings on Asia-Europe routes, starting at the end of January and continuing throughout February. These measures aim to balance the gap between planned supply and demand on these key routes. PFE is closely monitoring these developments and working proactively to secure capacity to mitigate any delays for our customers.

Restructuring of Shipping Alliances

Beginning on 1st February 2025, a major restructuring of global shipping alliances will take effect with carriers launching their new strategic partnerships. These changes are expected to enhance service offerings and maintain competitiveness in the market. However, in the short term, the transition may cause disruptions as carriers adjust their schedules and service networks.

Gaza Ceasefire Positive Development

This week’s announcement of an imminent ceasefire between Israel and Hamas has generated speculation that the Red Sea and Suez Canal could once again become a viable shipping route. The Houthi pledge to end hostilities in the region following the ceasefire is a hopeful sign, but the shipping industry will be closely watching to see if they cease targeting commercial vessels for a sustained period before any attempts are made to use the Suez Canal again.

Insurers will also need time to adjust risk assessments following the ceasefire, and carriers remain cautious. This means that, despite the positive developments, diversions around the Cape of Good Hope are likely to continue for the foreseeable future.

If you have any questions or concerns regarding your shipment, please don’t hesitate to contact our Customer Service Team at 01376 533039 or email [email protected].