It encourages Suez to block transportation costs
Shares of shipping operators increased the likelihood of higher merchandise sales rates, which could lead to a long blockade of the Suez Canal that forced industry executives to consider long alternative routes to their vessels.
China’s Cosco Shipping and South Korea’s Hyundai Merchant Marine led a stock price hike in Asia on Friday with a nearly 10 percent rise, according to rescue experts take weeks to relocate A 400-meter-long Vessel Ship ever delivered from the edge of the Suez Canal.
The shipping companies were thinking about whether to focus the cargo around Africa, which would add at least seven days and high costs to the voyages. James Wroe Maersk, head of Asia Pacific liner operations, wrote on social media that the decision was a “dice roll”.
The Hyundai Merchant Marine has already diverted it from the Southampton to Thailand to avoid the Hyundai Prestige Suez Canal on its way to Laem Chabang and around the Cape of Good Hope in South Africa. Singapore and Tokyo shipping brokers said similar diversion decisions are “close” to many oil tankers and other vessels.
The shipping companies estimated nearly 200 ships they landed On both sides of Suez, the main point where about 12% of world trade flows. The route is very important for high-demand foods like oil, gas and coffee.
By number of Suez Canal
Average number of boats passing through the 120-kilometer-long Suez Canal per month – more than 50 boats a day
Ship carriers account for almost 30% of traffic, container vessels for 25% and tanker transport for 15%.
Number of ships crossing the Suez Canal in 2020 (data provided by Refinitiv)
Rescue specialists in the Netherlands and Japan have come up with a number of theories to find the best way to release the Ever Given, a tremendous technical challenge that has been hampered by bad weather. Nippon Salvage, which is part of the rescue work, refused.
An official from Shoei Kisen Kaisha, the Japanese owner of Ever Give, said he was focusing on evicting the container ship, but added that it was “very difficult” to resolve the situation.
“The market is committed to keeping the issue going for a while,” said Kim Young, an analyst at Samsung Securities. “If you deviate to Cape of Good Hope, it will probably take another week to get from Shanghai to the Netherlands… freight rates further “.
Ocean Network Express, one of Japan’s three largest shipping companies, said while nothing was decided on the diversions, the situation was well under control.
Western vessels departing from or departing from other ports in Japan, Korea, China, and Northeast Asia would do so normally, the ONE added. However, the situation was assessed when they arrived in Singapore.
Analysts said there was a specific point in the Indian Ocean that shipping companies should decide to take the Cape of Good Hope route or go to Suez, betting that the block would be cleared by the time they arrived.
Mitsui OSK Lines, which has four tanks carrying chemical materials and steel attached to Suez, said it was not considering redirecting the vessels, hoping the situation would be resolved within two weeks.
Singapore’s transport minister Ong Ye Kung wrote on Facebook that “regional supplies could be temporarily suspended”.
About a third of world maritime trade travels through the city-state and the Malacca Strait, a critical shipping route between the Indian and Pacific oceans. Suez’s long blockade on the Singapore port “can see timetable disruptions when shipping lines direct voyages,” Onge said.
Leo Lewis and Kana Inagaki in Tokyo, Song Jung in Seoul, Hudson Lockett in Hong Kong and Stefania Palma in Singapore