Hundreds of large vessels are rerouting around the southern tip of Africa, a longer route adding 10-14 days of travel, to escape drone and missile attacks by Yemeni Houthis that have pushed up oil prices and freight rates.
The attacks by Iranian-backed militants have disrupted international trade through the Suez Canal, the shortest shipping route between Europe and Asia, which accounts for about a sixth of global traffic.
South Africa’s major ports, including Durban, one of Africa’s largest in terms of container volumes handled, as well as Cape Town and Ngqura ports are among the worst performing globally, a World Bank 2022 index released in May found.
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Maersk said vessels routed around the Cape will as far as possible try to fuel at origin or destination.
“In case there is a need for bunkering en route, it would be decided on a case by case basis with Walvis Bay (Namibia) or Port Louis (Mauritius) being the top options,” a spokesperson said.
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Rough weather with high seas, common at the ‘Cape of Storms’ as well as the cyclone-prone Mozambique Channel, mean ships could burn through their fuel quicker, making refueling services crucial, shippers said.
“In Singapore, we’re delivering larger bunker volumes to vessels that will now be sailing longer voyages,” a spokesperson for TFG Marine, a unit of energy trader Trafigura, said.
Violence is not good and I hope that we can avoid human injuries from these senseless attacks. How significant of an impact does this have on global oil prices? The article doesn’t provide...
Violence is not good and I hope that we can avoid human injuries from these senseless attacks.
How significant of an impact does this have on global oil prices? The article doesn’t provide figures. Would such a rerouting, as a grim sort of silver lining, accelerate the green energy transition or at least fuel efficiency technology in the same way as the crisis in the late 20th century?
Unless this breaks out into a wider regional conflict (which risk factors are present for) I'm highly skeptical it will be anything but a blip wrt green energy transition
Unless this breaks out into a wider regional conflict (which risk factors are present for) I'm highly skeptical it will be anything but a blip wrt green energy transition
Given that the US is now the largest exporter of oil, and few of those shipments will be going through the red sea in the first place, that will blunt any price effects of fluctuation in the...
Given that the US is now the largest exporter of oil, and few of those shipments will be going through the red sea in the first place, that will blunt any price effects of fluctuation in the middle eastern oil supply.
It's nothing like the shipping disruptions due to the Ukraine war. Adding 10 days to shipping times will increase costs a bit. Cargo will still get there.
It's nothing like the shipping disruptions due to the Ukraine war. Adding 10 days to shipping times will increase costs a bit. Cargo will still get there.
From the article:
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Violence is not good and I hope that we can avoid human injuries from these senseless attacks.
How significant of an impact does this have on global oil prices? The article doesn’t provide figures. Would such a rerouting, as a grim sort of silver lining, accelerate the green energy transition or at least fuel efficiency technology in the same way as the crisis in the late 20th century?
Unless this breaks out into a wider regional conflict (which risk factors are present for) I'm highly skeptical it will be anything but a blip wrt green energy transition
Given that the US is now the largest exporter of oil, and few of those shipments will be going through the red sea in the first place, that will blunt any price effects of fluctuation in the middle eastern oil supply.
It's nothing like the shipping disruptions due to the Ukraine war. Adding 10 days to shipping times will increase costs a bit. Cargo will still get there.