Shipping Company Maersk Considers "South Africa Detour Route"...Concerns Over Prolonged Suez Canal Blockage

If a detour route is chosen, fuel costs increase by $300,000
Egyptian authorities fail to salvage stranded ship... daily loss of $60,000

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] As the blockade of the Suez Canal, known as the main artery of international logistics, is expected to be prolonged, Maersk, the world's largest shipping company based in Denmark, announced that it will use a detour route around South Africa. Most other shipping companies are also expected to choose detour routes if the Suez Canal blockade lasts more than a week. Using the detour route via the Cape of Good Hope in South Africa would increase the sailing time by at least 7 days, resulting in enormous additional freight charges and raising concerns about a logistics crisis.

According to foreign media including Bloomberg on the 25th (local time), Maersk, the world's largest shipping company, stated in a press release, "We are reviewing all alternatives, including the route via the Cape of Good Hope in South Africa," and added, "For important and sensitive cargo, air transport is also being considered." Another major shipping company, Hapag-Lloyd, also said, "Due to the Suez Canal situation, we are currently looking for vessels that can navigate the detour route via the Cape of Good Hope."

Choosing the detour route via the Cape of Good Hope in South Africa increases the sailing distance by approximately 9,650 km. An additional sailing period of at least 7 to 9 days is required, and in the case of large oil tankers transporting crude oil from the Middle East to Europe, fuel costs alone could increase by more than $300,000 (about 340 million KRW), Bloomberg reported.

Despite these concerns about losses, shipping companies are considering using detour routes because the Egyptian authorities have not announced a reopening schedule even as the blockade of the Suez Canal enters its third day, contrary to expectations, and the salvage operation of the grounded vessel has made little progress. The Suez Canal Authority (SAC) of Egypt stated in a press release on the day, "The salvage operation involving eight tugboats connected together is ongoing," but it is reported that they have failed to move the ship.

The SAC believes that the grounded vessel is too heavy for the tugboats to pull and that towing will only be possible after all containers on the ship are unloaded. According to CNBC, unloading operations require ordering and installing large cranes, which could take several months, leading shipping companies to have no choice but to opt for detour routes. CNBC also reported that shipowners could incur losses of about $60,000 for each day the vessel's operation is delayed.

This content was produced with the assistance of AI translation services.