Please note: since drafting this update, we have received news that MSC service may be resumed, utilizing feeder vessels to Saudi Arabia. While this is good news, it does not yet change our recommendations on seeking coverage now for your Ethiopian coffee needs. We will continue to share updates as we receive them. 

With the ongoing crisis in the Red Sea, there have been at least 15 separate missile attacks on foreign vessels, originating from Yemen. Most of the larger carriers have sustained moderate or minor damage and been able to continue, but there have been sailor deaths, and even a couple of smaller vessels have been sunk. In March, Maersk line suspended service, but have since resumed it (albeit at 2 calls per month, when it had been 2 per week). Djibouti, the only port for all Ethiopian shipments leaving the region, has remained open and shipments have been moving mostly on time, with minor delays. The carrier MSC has taken up most of the slack. 

As of last week, MSC is suspending Djibouti service entirely. They currently represent 80% of the shipping capacity for this port. This is likely to have a massive impact on the availability of Ethiopian coffee for the foreseeable future. The cost of insuring shipments transiting this region has also increased. 

Good news: Royal has a decent position of coffee already afloat or booked on one of the last vessels to depart this week.  These are coffees denoted with “ETA xx/xx Oakland” or “Intend Ship 7/9” on our position report. 

• If you have coffee already booked and your position includes “ETA,” you will be getting this coffee.  
• Coffees with “Intend Ship” dates: we are confident these will arrive as well, but we don’t have a guarantee yet.  
• We are working hard to get coffees booked using more expensive SPOT freight rates, as the demand for whatever remaining capacity has shot through the roof.  
• If the coffee does not have an “ETA” or “Intend Ship” date, we don’t know when it will arrive. 

What to do? Book enough coffee to cover your needs through the end of 2024. Even if it is not exactly the lot or type you had planned, it is much better to have something than nothing. If you are going to need Ethiopians during the calendar year 2024, we highly recommend booking them now from Afloat coffees. It is unlikely we are going to have much in the way of SPOT inventory for quite some time. Get in touch with your trader or email us.