Maersk and CMA CGM Restore Some Red Sea Transits While Industry is Divided

2023-12-29

The major carriers remain divided on sending vessels through the Suez Canal and the Red Sea as they continue to acknowledge that safety remains a concern. With the deployment of the international security coalition in the region, several carriers, including Maersk, are beginning to restore some services, while others continue to say it is too soon due to the instability and safety issues.

After showing that 15 routes were being impacted by the diversions around the Cape of Good Hope, Maersk has begun to reverse some of the changes on an individual case. In a customer advisory on Sunday, December 24, Maersk said it was preparing to allow vessels to resume the transit and was working on a plan for the first vessels to make the transit. 

The schedules posted to the company's website show ships on several routes listed as "Continue via Suez Canal." In contrast, on the same route, other vessels are still listed as "Diverted via Cape of Good Hope. In total ", several dozen" container vessels will be restored to the routes via the Red Sea after Maersk began on December 19, rerouting all ships around Africa. Maersk paused all transits on December 15 after one of its ships was among those targeted by the Houthis for an attack. 

CMA CGM also reported to customers that some vessels have made the transit through the Red Sea and that it was "currently devising plans for the gradual increase in the number of vessels transiting through the Suez Canal." 

"We are taking all possible steps to minimize delays and inconvenience to our vessels and cargoes whilst making sure maximum safety is ensured at all times in this uncertain context still prevailing in the south Red Sea area," the French carrier wrote in its December 26 advisory to customers. 

Carriers are anxious to maintain security while also wanting to reduce the delays and disruptions to their service, all adding to the costs. Analysts highlight that the diversion around Africa can add up to two weeks for a vessel sailing from Asia to Northern Europe and nearly three weeks for services into the Mediterranean from Asia. Even sailings to the U.S. East Coast require an added week of transit time to go around Africa. 

In an update from the media, container freight spot rates have increased as much as 26 per cent over the past four weeks since the security issues began. The disruptions also mean that additional capacity and vessels need to be made available if the carriers are to maintain their scheduled departures.

The international coalition has advised the carriers that the risk appears to be greatest during daylight hours. All the drone attacks and missiles have been fired from Yemen during the daylight, with reports that the coalition said it might also be more challenging for the attackers to hit vessels at night.

Despite this, other carriers report continuing to divert their ships. Hapag-Lloyd is reassessing its decision several times a week. They said their "crisis committee was in session today" and believe it is too dangerous now. They, however, said they would review the decision again.

After one of its vessels was attacked off the Coast of Yemen, MSC Mediterranean Shipping Company said, "Until their safety can be ensured, MSC will continue to reroute vessels booked for Suez transit via the Cape of Good Hope."

Many of the second-tier container carriers had followed the lead of the industry majors in rerouting their vessels. While the container carriers have been united in the efforts to divert ships, other segments are still using the Red Sea and Suez. AIS signals, for example, show bulkers and crude oil tankers making the transit. However, The Suez Canal has not been updated on its daily transits since mid-December.

 

#sopisconews #banana #banano #bananatrade #bananastatistics