Shipping Firms Reroute Vessels via Cape of Good Hope Amid Middle East Conflict

Deep News
03/02

Following military strikes by the United States and Israel against Iran, and the subsequent closure of the Strait of Hormuz, major shipping companies including Maersk, Hapag-Lloyd, and CMA CGM are arranging for their vessels to be rerouted around Africa. This move avoids the Suez Canal and the Bab el-Mandeb Strait. In a statement issued on Sunday, the Danish container shipping group Maersk said, "In light of the deteriorating security situation in the Middle East due to escalating military conflict, we have decided... to temporarily suspend all future transits through the Suez Canal via the Bab el-Mandeb Strait." Maersk added that services would prioritize the Suez Canal route once the situation stabilizes and security conditions permit. Affected services include routes connecting the Middle East/India to the Mediterranean and the Middle East/India to the U.S. East Coast.

German shipping group Hapag-Lloyd also issued a statement confirming it is rerouting its IMX container service, which connects India, the Middle East, and the Mediterranean, to waters around South Africa. The company stated it would prioritize reinstating the service as soon as transit safety allows. Hapag-Lloyd announced that, effective March 2, it will impose a War Risk Surcharge on cargo to and from the Upper Gulf, Arabian Gulf, and Persian Gulf.

French maritime group CMA CGM announced on Sunday that it will levy an Emergency Conflict Surcharge on cargo to and from Iraq, Bahrain, Kuwait, Yemen, Qatar, Oman, the UAE, Saudi Arabia, Jordan, Djibouti, Sudan, Eritrea, and the Red Sea port of Ain Sokhna. Maersk and Hapag-Lloyd stated they will suspend all vessel transits through the Strait of Hormuz until further notice. This comes after Iran warned on Saturday that the strait, which carries about one-fifth of the world's oil consumption, had been closed.

Studio City International Holdings Ltd announced on Sunday that it is suspending all new cargo bookings for the Middle East until further notice. The company has directed all its vessels in or heading towards the Persian Gulf region to proceed to safe havens until further notice. Studio City International Holdings Ltd stated that booking services would resume immediately once the security situation improves. CMA CGM said on Saturday that it had instructed its vessels in or en route to the Gulf region to head to safe havens. The company confirmed it will suspend Suez Canal transits, opting instead for the route around the Cape of Good Hope.

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