Freight News, Sea


Far East transits increase by up to 20 days as carriers reroute

[ January 2, 2024   //   ]

A total of 299 vessels – 18% of global shipping capacity – have rerouted from the Red Sea and Suez Canal to the longer route via the Cape of Good Hope in Africa, following the intensification of attacks on shipping by Houthi rebels in Yemen, reports project44.

The visibility specialist said that its AI-powered data indicated that the majority of rerouted vessels are experiencing a 7-20 day increase in transit time. Some of the vessels that are rerouting have increased their speeds to help offset the delay but this will increase fuel costs, and hence ocean freight rates, it said.

Project44 said that, as of 27 December, the Hapag-Lloyd vessel Al-Jasrah, MSC vessel MSC Palatium III, Inventor Chemical Tankers’ M/V Swan Atlantic, and MSC United VIII had all been hit, with the most recent successful attack occurring on 26 December. Maersk vessel Gibraltar narrowly avoided a missile attack on 14 December leading to all major carriers including Maersk, Hapag-Lloyd, MSC, Evergreen and CMA CGM suspending operations through the Red Sea, although Maersk and CMA CGM have since announced plans to resume shipments through the area.

The US, UK, Bahrain, Canada, France, Italy, the Netherlands, Norway, Spain, and Seychelles have set up a Operation Prosperity Guardian coalition to protect commercial vessels from further attacks, but it is unlikely carriers will resume shipments in the Red Sea yet.

Project44 said that a further 28 other vessels had opted to remain stationary and try to wait out the conflict. It said it was also seeing some vessels previously flagged as rerouting turning back towards the Strait, particularly vessels operated by Maersk.

However, on 2 January Maersk said that following a further incident involving the Maersk Hangzhou  on 30 December, it would pause all transits through the Red Sea / Gulf of Aden until further notice. An investigation into the incident is ongoing and Maersk continue to pause all cargo movement through the area while it further assessed the situation.

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