SHIPPING: Maersk will continue diversions away from Suez Canal
Adam Yanelli
28-Jan-2025
HOUSTON (ICIS)–Global container shipping major Maersk said it will continue to avoid the Suez Canal and Red Sea until safe passage through the area is ensured for the longer term to optimize stability and certainty across supply chains.
In an advisory to customers, Maersk said the ceasefire agreement between Hamas and Israel and the announcement from Houthi rebels that they will only attack Israel-linked vessels is a “welcome step in the right direction towards stability and eventual normality for the global shipping industry.”
“The process to bring the current conflict between Israel and Hamas to an end is dependent on a multi-phased roadmap continuing to be met, and as such the predictability of the situation remains a complex challenge,” Maersk said. “Furthermore, due to the continued tensions in the region, the security risk of commercial vessels transiting the Red Sea and Bab-el-Mandeb strait remains high.”
Global shipping capacity tightened at the onset of the attacks as commercial vessels had to reroute around the Cape of Good Hope, which pushed shipping costs higher.
The reopening of the Suez Canal would have the greatest impact on normalizing the Asia-to-Europe container shipping route but would also affect Asia-US rates, as shipping capacity would surge once carriers were able to access the shorter route.
One reason shipping companies are hesitant to alter routes is because it typically takes three to four months to create new schedules, including all complementary services.
Maersk also said its Gemini Cooperation with Hapag-Lloyd will be phasing in routes via the Cape of Good Hope on 1 February, as previously planned.
Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets.
They also transport liquid chemicals in isotanks.
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