FIATA calls on Govtsand industry to ensure Maritime supply chain fluidity and connectivity

The Federation of International air transport association has called for strengthening international dialogue and monitoring between governments and Industry decision markers to ensure Maritime supply chain fluidity and connectivity in the wake of unilateral imposition of surcharges by shipping lines operating on and outside of the Red Sea and Suez Canal for protection of consumers and economies worldwide.

The Red Sea, one of the busiest waterways in the world linking Europe and Asia, has become a focal point of concern in the context of persistent attacks against commercial shipping. Approximately 18 shipping lines have either stopped or rerouted traffic on the waterway due to ongoing attacks, with increased transit times of around 12 days due to rerouting via the Cape of Good Hope.

Amid sharp increases in freight rates, concerns are being raised on the extent of surcharges levied on both affected and unaffected routes. Careful management will be required to mitigate impacts on international trade. In its recent communication and position paper, FIATA calls for governments and all supply chain stakeholders to strengthen international dialogue and collaboration to facilitate a coordinated approach to finding and implementing united solutions for a resilient maritime supply chain.

Drawing lessons from the recent maritime crisis, and at a time of significant inflationary pressure, FIATA has urged shipping lines at large to exercise particular care in the imposition of surcharges, and to communicate additional surcharges in a transparent and clear manner.

FIATA has also raised concerns about the lack of information on the content of these surcharges, noting the alarming ‘all in’ invoicing with no itemisation of the various components for shipments. The impact on ports and global supply chain connectivity is concerning, noting that some ports could be severely disadvantaged…

FIATA joins the International Maritime Organization (IMO) in supporting the United Nations Security Council’s Resolution 2722 (2024) which affirms the need to respect the exercise of navigational rights and freedom by merchant vessels, in accordance with international law, and supports the IMO’s continued work to enhance the safe and secure transit of vessels through the Red Sea and to closely monitor the situation in collaboration with Member States and industry partners, it emphasised in a communique.