Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Maersk to send almost all ships via Suez, schedule shows

Published 12/28/2023, 06:07 AM
Updated 12/28/2023, 06:11 AM
© Reuters. FILE PHOTO: The world's first methanol-fueled container vessel Laura Maersk, owned by shipping company Maersk, is seen in Copenhagen, Denmark September 14, 2023. REUTERS/Jacob Gronholt-Pedersen/File Photo

By Louise Rasmussen

COPENHAGEN (Reuters) - Denmark's Maersk will sail almost all container vessels travelling between Asia and Europe through the Suez Canal from now on while diverting only a handful around Africa, a Reuters breakdown of the group's schedule showed on Thursday.

Major shipping companies, including container giants Maersk and Hapag-Lloyd, stopped using Red Sea routes and the Suez Canal earlier this month after Yemen's Houthi militant group began targeting vessels, disrupting global trade.

Instead, they rerouted ships around Africa via the Cape of Good Hope to avoid attacks, charging customers extra fees and adding days or weeks to the time it takes to transport goods from Asia to Europe and to the east coast of North America.

But Maersk on Dec. 24 said it was preparing a return to the Red Sea, citing the deployment of a U.S.-led military operation to protect vessels, and on Wednesday released schedules showing ships were headed for Suez in the coming weeks.

A detailed breakdown showed that while Maersk had diverted 26 of its own ships around the Cape of Good Hope in the last 10 days or so, only five more were scheduled to start the same journey.

By contrast, more than 50 Maersk vessels are set to go via Suez in coming weeks, the company's schedule showed.

But Maersk said alliance partner Mediterranean Shipping Company (MSC) continued to divert all MSC vessels via the Cape of Good Hope for the time being, regardless of date or point of departure and the direction they were sailing in.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

MSC did not immediately respond to a request for comment.

Hapag Lloyd on Wednesday said it still considered the situation too dangerous to pass through the Suez Canal, adding that it planned to review the situation on Friday,

The Suez Canal is used by roughly one-third of global container ship cargo, and re-directing ships around the southern tip of Africa is expected to cost up to $1 million extra in fuel for every round trip between Asia and Northern Europe.

Among a handful of other third-party vessels in Maersk's alliance that were set to sail in the coming weeks, two would be diverted around Africa while the rest would travel via Suez, the schedule showed.

All schedules remain subject to change based on specific contingency plans that may be formed over the coming days, Maersk has said.

The company did not immediately respond to a request for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.