Container ships are unlikely to resume transits via the Suez Canal for at least the first six months of 2024, as major carriers will only return to the key trade waterway when the risk of attacks on commercial vessels has subsided, according to maritime consultancy Drewry.
Carriers appear to be working on resuming journeys through the Suez Canal within this year, though the duration of the Red Sea shipping crisis is difficult to predict, the London-based consultancy said, citing polls and discussions with its clients.
“The consensus view is that it will be within months, rather than the full-year, and certainly not within weeks,” Simon Heaney, senior manager at Drewry's container research unit, said in a webinar on Tuesday.
Many vessels are avoiding the Red Sea route because of attacks by Houthi rebel groups on merchant shipping, opting instead to sail the longer route around South Africa’s Cape of Good Hope.
The number of container ship transits through the Suez Canal in the first three weeks of 2024 is down 74 per cent year-on-year, according to Drewry data. Meanwhile, the Cape of Good Hope transits have jumped 218 per cent during the period.
Spot rates for transporting a 40ft container from Asia to Europe through the Suez Canal have surged more than 300 per cent since the attacks began in November, according to Drewry. Carriers are implementing surcharges of $500 to $2,500 per container to reroute ships, the consultancy said.
Diverting via the Cape of Good is creating supply chain problems and delays for shippers.
Estimated transit times from Asia to key destinations in Northern Europe are up 32 per cent to 40 days, compared to the shorter transit time via the Suez Canal, according to Drewry.
In the next five weeks, on the Asia to North Europe trade route, there will be 34 cancelled sailings out of 145 scheduled trips, Philip Damas, managing director of the Drewry Group, said.
However, there are already indications that the elevated spot rates from Asia to Europe are softening, Mr Damas added.
If the Suez Canal diversions end by second quarter of this year, then the average east-west shipping rates could decline by more than 10 per cent in 2024 compared to 2023, he said.
UAE currency: the story behind the money in your pockets
THREE
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The biog
Hobby: Playing piano and drawing patterns
Best book: Awaken the Giant Within by Tony Robbins
Food of choice: Sushi
Favourite colour: Orange
My Cat Yugoslavia by Pajtim Statovci
Pushkin Press
ACC 2019: The winners in full
Best Actress Maha Alemi, Sofia
Best Actor Mohamed Dhrif, Weldi
Best Screenplay Meryem Benm’Barek, Sofia
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Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Global state-owned investor ranking by size
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Afcon 2019
SEMI-FINALS
Senegal v Tunisia, 8pm
Algeria v Nigeria, 11pm
Matches are live on BeIN Sports
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Engine: 3.0-litre six-cylinder turbo
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UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
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WRESTLING HIGHLIGHTS
UAE WARRIORS RESULTS
Featherweight
Azouz Anwar (EGY) beat Marcelo Pontes (BRA)
TKO round 2
Catchweight 90kg
Moustafa Rashid Nada (KSA) beat Imad Al Howayeck (LEB)
Split points decision
Welterweight
Gimbat Ismailov (RUS) beat Mohammed Al Khatib (JOR)
TKO round 1
Flyweight (women)
Lucie Bertaud (FRA) beat Kelig Pinson (BEL)
Unanimous points decision
Lightweight
Alexandru Chitoran (ROU) beat Regelo Enumerables Jr (PHI)
TKO round 1
Catchweight 100kg
Marc Vleiger (NED) beat Mohamed Ali (EGY)
Rear neck choke round 1
Featherweight
James Bishop (NZ) beat Mark Valerio (PHI)
TKO round 2
Welterweight
Abdelghani Saber (EGY) beat Gerson Carvalho (BRA)
TKO round 1
Middleweight
Bakhtiyar Abbasov (AZE) beat Igor Litoshik (BLR)
Unanimous points decision
Bantamweight
Fabio Mello (BRA) beat Mark Alcoba (PHI)
Unanimous points decision
Welterweight
Ahmed Labban (LEB) v Magomedsultan Magomedsultanov (RUS)
TKO round 1
Bantamweight
Trent Girdham (AUS) beat Jayson Margallo (PHI)
TKO round 3
Lightweight
Usman Nurmagomedov (RUS) beat Roman Golovinov (UKR)
TKO round 1
Middleweight
Tarek Suleiman (SYR) beat Steve Kennedy (AUS)
Submission round 2
Lightweight
Dan Moret (USA) v Anton Kuivanen (FIN)
TKO round 2
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UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
Zayed Sustainability Prize
