Grand swings Asia/Europe string around Africa
Grand Alliance member lines Hapag-Lloyd, NYK Line, MISC Berhad and OOCL said Monday they are rerouting the backhaul of their EU3 service between the Far East and Northern Europe around the Cape of Good Hope rather than through the Suez Canal.
They join a small but growing list of carriers who have decided the extra sailing time is preferable to paying the cost of transiting the Suez and Panama canals. The routing choices are directly attributable to two factors — the relatively low cost of bunker fuel and poor ocean freight rates, particularly on the return legs of services to Asia.
“The decision, which takes place with immediate effect, is in response to high Suez Canal toll fees, which are difficult for carriers to afford in the current economic environment,” the alliance said in a statement Monday. “The Grand Alliance will consider rerouting more services if the overall economic situation does not improve.”
The route around the tip of Africa adds seven days sailing time to the eastbound leg of the service, on which 10 8,000-TEU ships are deployed. The EU3 has an eastbound port rotation of Southampton, Hamburg, Rotterdam, Port Klang, Singapore, Shekou, Hong Kong, Ningbo and Shanghai.
The westbound leg will continue to transit the Suez Canal.
Grand swings Asia/Europe string around Africa
