Four major shipping companies have already announced that they were suspending passage through a Red Sea strait vital for global trade because of the attacks on shipping.
Global shipping companies' recent reluctance to transit through the Suez Canal will affect China-Europe trade and exert pressure on operational costs of businesses on both sides, said experts and business executives on Tuesday.
Owing to security concerns related to their shipping operations in the Red Sea region, a key route for entering and exiting the Suez Canal, several shipping groups, such as Denmark's Maersk Line, Germany's Hapag-Lloyd AG and France's CMA CGM SA, have recently announced the suspension of voyages in the area along with adjustments to marine insurance policies.
When cargo ships avoid the Suez Canal and instead navigate around the southwestern tip of Africa — the Cape of Good Hope — it implies increased sailing costs, extended shipping durations and corresponding delays in delivery times.
Due to the necessity of circumnavigating the Cape of Good Hope for shipments heading toward Europe and the Mediterranean, current average one-way journeys to Europe are extended by 10 days. Meanwhile, journey times heading toward the Mediterranean are further increased, reaching around 17 to 18 additional days.
Post time: Dec-29-2023