8.5 C
Wednesday, February 21, 2024
Home News Red Sea detours will prolong transit times by 30%

Red Sea detours will prolong transit times by 30%

If all container shipping routes along the Red Sea take detours round the Cape of Good Hope, transit times could jump by 30%, according to consultancy Linerlytica’s report.

Taiwan’s three main liner operators Evergreen Marine Corporation, Yang Ming Marine Transport and Wan Hai Lines, issued customer advisories on 18 December, saying that they are joining their peers in suspending shipments to Israel and moving Red Sea transits to the Cape of Good Hope.

Ship owners, concerned with increasingly frequent missile strikes at all kinds of vessels in the Red Sea, by Houthi rebels, have felt compelled to move their vessels away from the area.

Linerlytica opined that more non-Israel-linked ships could join the Red Sea exodus after Maersk, MSC, CMA CGM, Hapag-Lloyd and HMM announced in the past week that they would pause their ships’ journeys in the Red Sea. The alternative route via the Cape would raise round trip transit times by three to five weeks, with ships to the East Mediterranean having to make the longest diversions.

Red Sea crisis: Switch to round-Africa affects required vessel capacity and transit times

The last three weeks have seen 42 Israeli-linked ships rerouted away from the Suez Canal, according to Linerlytica. Twenty of these ships on the Asia-Mediterranean and Asia-North Europe routes will detour round the Cape of Good Hope while another 22 ships have been reassigned to other trades that avoid the Red Sea.

There are 8.25 million TEU of container ships on the Suez route currently, translating into 9.3% of the global fleet.

Red Sea crisis: Markets spike, consumers will pay the price

Linerlytica said, “If all of these ships are forced to divert from the Suez to the Cape route, it would raise global TEU-mile demand by at least 2.5 million TEU which is equivalent to 9% of the current global fleet. The impact will be higher if vessel speeds are not increased to minimise the schedule delays.”

Martina Li
Asia Correspondent

Latest Posts

Unlocking the Advantages of MERV Filters for Your Home

In the quest for a healthier and more comfortable indoor environment, many homeowners are turning their attention to the air quality within their living...

Hapag-Lloyd introduces new rates from Indian Sub to North Europe

Hapag-Lloyd is implementing tariff rate adjustments for shipments from the Indian Subcontinent to North Europe. These adjustments will come into effect for sailings commencing on...

Maersk completes largest infrastructure investment in New Zealand with new cold chain facility

A.P. Moller-Maersk marked the inauguration of its cutting-edge integrated cold chain facility at the Ruakura Superhub, reaffirming Hamilton's pivotal role as a central hub...

HMM earns ‘A-‘ environmental rating from CDP

HMM has been honoured for its commitment to sustainability and transparency in addressing climate change by the global environmental organization CDP, achieving an ‘A-’...

Expanding supply to put brakes on rates

A rise in container capacity will halt the increase in freight on the major east-west trades according to Drewry’s latest tool, the Container Capacity Insight...