Shares of shipping operators have jumped in anticipation of higher fares as the Suez Canal is likely to be a long-term hurdle for industry executives.
The stock rose nearly 10 percent on Friday after rescue experts indicated that China’s Cosco Shipping and South Korea’s Hyundai Merchant Marine led the rise in share prices in Asia. It will take a week to get aroused 400 meters from the banks of the Suez Canal.
Shipping companies were considering whether to rearrange cargo around Africa, which would add at least seven days and significant costs to travel. James Bro, head of liner operations at Marsk Asia Pacific, wrote on social media that the decision was a “roll of the dice”.
The Hyundai Merchant Marine, already on its way from Southampton to Lam Chabang, Thailand, has diverted the Hyundai Prestige to bypass the Suez Canal and surround the Cape of Good Hope in South Africa. Shipbrokers in Singapore and Tokyo said similar rebuilding decisions were “imminent” regarding several oil tankers and other ships.
Shipping companies estimate that about 200 ships Was trapped On either side of the Suez, the Chokepoint through which about 12 percent of world trade flows. The root is important for oil, gas and high-demand foods such as coffee.
Suez Canal in number
Number of ships passing through the 120 mile long Suez Canal per month – more than 50 ships per day
Bulk carriers account for about 30% of traffic, container vessels 25% and tankers for 15%.
Ships that crossed the Suez Canal in 2020 (data provided by Refinitive)
Dutch and Japanese rescue experts have developed various theories for how to best free Ever Given, a catastrophic technical challenge complicated by bad weather. Nippon Salvage, who is part of the rescue effort, declined to comment.
An official at Shoi Kisen Kaiser, the Japanese owner of Ever Given, said it was focusing on displacing the container ship, but added that the situation remained “extremely difficult” to resolve.
“The market is betting that this problem may continue for some time,” said Kim Yongho, an analyst at Samsung Securities. “If you block the Cape of Good Hope, it will probably take at least another week to reach the Netherlands from Shanghai. . . If you have to turn around, it will increase the current Rental rates More
The Ocean Network Express, a joint venture of Japan’s three largest shipping companies, said the situation was being closely monitored, although no decision had been made on reconstruction.
Ports in Japan, Korea, China and elsewhere in Northeast Asia will do so as ships leave or are scheduled to leave the west, “ONE added, adding that they will assess the situation once they arrive in Singapore.
Analysts say there is a specific point in the Indian Ocean where shipping companies will have to decide whether to take the Cape of Good Hope route or travel to Suez, betting that the hurdle will only become clearer.
Mitsui OSK Lines, which has four tankers stranded in Suez carrying chemical and steel materials, said it was not considering rescheduling the ships in the hope that the situation could be resolved within two weeks.
Singapore’s Transport Minister Wong Ye Kung wrote on Facebook that “supplies to the region may be temporarily disrupted”.
A prolonged blockade of Suez, a sea transport lane between the Indian and Pacific Oceans, about a third of the world’s maritime trade via the city-state and the Malacca Strait, would mean the port of Singapore would be “disrupted when shipping lines begin their journey,” Wong said.
In Tokyo, Leo Lewis and Kana Inagaki report, Seoul Gan Jung-a, Hong Kong’s Hudson Locket and Singapore’s Stefania Palma