Recently, at least 13 large container ships have chosen to bypass the Cape of Good Hope when returning to Asia from Northern Europe.
Alphaliner mentioned in the latest weekly market report that recently, at least 13 large container ships of more than 14,000TEU did not choose the traditional Suez Canal route when returning to Asia from Europe, but instead detoured around the Cape of Good Hope.
These ships all choose to go around the Cape of Good Hope on the return route between Asia and Europe. Similar situations have not yet occurred on the outbound route.
Alphaliner predicts that more large container ships may choose this route in the coming weeks.
According to Alphaliner's analysis, weak transportation demand in the current container shipping market, falling freight rates, excess shipping capacity and high tolls on the Suez Canal are the main reasons for large container ships to bypass the Cape of Good Hope.
It can be intuitively seen from the container load of ships that the current cargo volume on the Asia-Europe route has dropped significantly compared with the first quarter of this year. Many small-scale shipping capacities that have newly entered the market have been forced to withdraw, and choosing to sail around or slow down is also a way to reduce shipping capacity.
At the same time, due to the recent decline in fuel prices and the high tolls on the Suez Canal, it is undoubtedly more economical to go around the Cape of Good Hope.
Taking Rotterdam to Singapore as an example, it takes 3,500 more nautical miles to sail around the Cape of Good Hope than through the Suez Canal. If calculated based on the ship's speed of 16 knots, it is equivalent to nine more days of travel. The current average price of IFO380 fuel is US$400/ton, and the fuel consumption for an extra nine days of voyage is approximately 1,100 tons, or approximately US$440,000.
In comparison, the toll for a large container ship passing through the Suez Canal is about US$1 million, which means that although the voyage is nine days longer, it can save about US$600,000. In the current situation of excess capacity and weak demand, it may be an option.
Original text from:https://mp.weixin.qq.com/s/_kWKVrvvznYxFh4_3AVbGg
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