In the latest news, Maersk has decided that "in the foreseeable future, all ships passing through the Gulf of Aden in the Red Sea will sail around the Cape of Good Hope".
Maersk said in a statement on its official website on January 5 that the current situation in the Red Sea region is still highly tense and full of uncertainties, and security risks continue to increase significantly. As a result, Maersk decided that in the foreseeable future, all Maersk ships passing through the Gulf of Aden in the Red Sea would go south around the Cape of Good Hope.
The diversion means that the vessel has to detour to southern Africa, which can add about 10 days of shipping time and requires more fuel, resulting in higher transportation costs.
According to statistics, the total number of ships around Maersk will exceed 170.
Maersk said they understand the potential impact this will have on their customers' logistics operations, but rest assured that all decisions are made deliberately, with the safety of vessels, seafarers and cargo owners being the highest priority. The suspension of navigation in the Gulf of Aden in the Red Sea is to provide customers with greater stability and availability, although this will cause some delays.
At the same time, Maersk also pointed out to customers that while they still want a sustainable solution in the near future and do everything they can to make this happen, customers also need to be prepared that problems in the region may persist and may cause significant disruption to the global network.
Maersk saidThe previously announced Shipping Interruption Surcharge (TDS), Peak Season Surcharge (PSS) and Emergency Response Surcharge (ECS) around the Gulf of Aden in the Red Sea remain in effect for all cargo on board vessels that are disrupted.
This means that in response to the current challenges and ongoing problems in the region, these surcharges will continue to exist and apply to the goods in question.
Among them, the TDS standard for routes from the Far East to Northern Europe, the Mediterranean, and the East of the United States will be 200 US dollars and 450 US dollars (different container types**).PSS standard is $300 to $2,000 (varies by container type**) until further notice.
The details of the charges are as follows:
The TDS here refers to the terms behind the bill of lading and Maersk is recovering the additional costs of the deviation in accordance with Clause 20(a) of the Conditions of Carriage and Clause 22(a) of the bill of lading (as the relevant carriage).
These additional charges are effective immediately from 19 December 2023 and apply to bookings made in the Far East Asia region, including cargo that has been or will be deflected "on the water". This will be listed as a "Shipping Interruption Surcharge" (TDS) on the customer's invoice.
Judging from the statements and executions issued so far, Maersk and Hapag-Lloyd are all ships that avoid sailing in the Gulf of Aden in the Red Sea.
However, there are also shipping companies that take a different approach. France's CMA CGM said it will continue to send ships through the Red Sea and the Suez Canal, and gradually increase the number of ships returning to the Suez Canal and the Red Sea route.
There are also a small number of routes including the Far East-Northwest Europe and the Mediterranean, which are subject to official or factual conditions.
The Suez Canal connects the Mediterranean Sea to the Red Sea and carries about one-third of the world's container ship cargo. The shortest route from Europe to Asia is through the Mediterranean, through the Suez Canal, and then into the Red Sea.
Returning to the Suez Canal and detouring the Cape of Good Hope will incur new transit fees, additional fuel costs, and exacerbate significant delays in shipping schedules.
With the jump in freight rates on the European route and the spillover to other routes, shipping companies are widely seen as beneficiaries of the Red Sea crisis. Since December 12, Maersk's share price has increased by almost 40%, Hapag-Lloyd's share price has increased by 60%, and ZIM's share price has increased by 100%.
Industry insiders believe that cheap shipping space will be booked out soon, and subsequent higher freight rates may cause shipowners to be difficult to book. However, there is also the possibility of a shortage of space and containers due to a chain disruption.
At present, the impact of the situation in the Red Sea has not yet been resolved.
The crisis of capacity shortages in the coming weeks will grow worse due to 2-3 weeks of delays caused by vessel detours. Combined with the peak shipments before the Lunar New Year, there will be a severe shortage of space.
In addition, due to the delay in the arrival of empty containers due to the extended range, the container condition has been tightened. If the situation in the Red Sea continues, a more severe shortage of containers is expected from the second half of January.
Although demand has been released in the short term, the total demand is still weak. On the ground, attention still needs to be paid to the needs of Europe and the Mediterranean.
Here's a reminder that judging from the current freight rate, the freight rate may continue in mid-to-late January, and there is also the possibility of a shortage of space and a lack of containers due to the subsequent chain disorder.