Steel News

We strive to let you one step ahead of the market.

Up to 1.7 million TEUs to be needed for rerouting Africa

25 Dec 2023 16:05 reported by Joy Liu

A A A
According to analysts, an additional 1.45 to 1.7 million TEUs will be needed for the planned diversions from the Suez Canal to the Cape of Good Hope on the Asia-Europe route.

The rerouting will account for 5-6% of the global capacity. It will reduce the current overcapacity in the shipping market but will also increase the freight rates. The impact on container shipping rates will appear after four weeks, and the delay will also be as long as up to four weeks due to the ship diversions.

Peter Sand, Xeneta’s chief data analyst, said that the rerouting will lead to an extra 3,000 miles to go around Africa to Europe, and an additional US$1 million in fuel costs per vessel will be passed onto customers.

Some shipping companies, such as Hapag-Lloyd and Maersk, have started charging a war risk surcharge of US$20 to US$100 per container, and ZIM charges more for longer routes around Africa.

Back to Steel News

Related News

International crude oil prices fall on Jun 16

  • Others
  • 17 Jun 2025 15:53

International crude oil prices soar on Jun 13 on Middle East tensions

  • Others
  • 16 Jun 2025 16:05

International crude oil prices hold steady on Jun 12

  • Others
  • 13 Jun 2025 13:48

Hanwha cleared by US to expand stake in Austal shipbuilding operations

  • Others
  • 13 Jun 2025 13:14

Container shipping rates keep rising, but peak near

  • Others
  • 12 Jun 2025 15:39

Metal Price Index

Learn more

LME Official Bid Price

  • Zinc
  • 2,612.00
  • 2,640.00
  • Aluminum
  • 2,529.50
  • 2,528.00
  • Copper
  • 9,820.00
  • 9,705.00
  • Nickel
  • 14,815.00
  • 15,015.00

Learn more