The Red Sea crisis in the ship recycling market has sparked hostility in the Middle East and led many shipowners to reroute ships around the Cape of Good Hope. This action is intended to protect the market and maintain higher-than-expected shipping prices. However, this means no positive news exists for the ship recycling market. The situation comes when many expect the dry cargo and container sectors to see less competition as shipments continue to flow and the Lunar New Year approaches. GMS, the world’s largest buyer of end-of-life ships, announced in its latest report on the recycling market that the subcontinent market remains subdued and is unlikely to increase prices before the Lunar New Year. MSC recently sent two container ships to Alang, which were part of the container line’s major handling program over the past year. Source: Seatrade – Maritime.
THE Alliance suspends Asia – Red Sea service
The Alliance has temporarily suspended Asia – Red Sea route due to security threats. The AR1 route, provided by Ocean Network Express (ONE), Hapag-Lloyd, Yang Ming, and HMM, connects ports in Northeast and Southeast Asia with the ports of Jeddah in Saudi Arabia, Aqaba in Jordan, and Ai’s Sokhna Port Update. Instead of going straight to the Red Sea, the route was adapted by diverting from the final port in Asia (Port Klang) via the Cape of Good Hope and adding transit via the Suez Canal, creating a longer journey. Of the remaining trips on the route, one will cross the Red Sea, and three others will go via the Cape of Good Hope. Three of the vessels will unload in Singapore. The itinerary of route AR1 is Pusan – Shanghai – Ningbo – Shekou – Singapore – Port Klang – Jeddah – Aqaba – Sokhna – Jeddah – Singapore – Pusan. Source: Seatrade-Maritime.
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Maersk Line Ltd abandons Red Sea
After the attack on US-flagged ships, Maersk Line Ltd withdrew from the Red Sea. Two ships of Maersk Line Limited, including Maersk Detroit (84,626 DWT) and Maersk Chesapeake (35,119 DWT), were moving in the waters when the crew witnessed an explosion nearby. The US Navy is escorting these ships and have been directed to return from the waters. Information from AIS shows that both ships have left Oman. Currently, the Maersk Chesapeake is returning to Oman. US Central Command confirmed the attack, and the USS Gravely shot down two anti-ship ballistic missiles launched by the Houthis along with a third. MLL, a Maersk subsidiary that operates U.S.-flagged vessels, has sailors in the U.S. crew supported by the U.S. government. They are continuing to use the Red Sea-Suez route at a faster pace. A large portion of MLL’s cargo is government-owned goods and equipment, including military goods. Source: Maritime-Executive.
More than 200,000 containers arrive at Piraeus port
More than 200,000 containers arriving at the port of Piraeus have been delayed due to the crisis in the Red Sea, according to Athens Chamber of Commerce President Yannis Chatzitheodosiou. Goods are being delayed up to 20 days, with more than 200,000 containers unable to arrive at the port due to the unstable situation in the Red Sea. He also announced that the shipping cost per container has increased to 6,500 EUR from the usual 1,800 EUR due to the longer travel distance of the alternative route. “We mainly import electronics, mobile phones, and clothing from the Far East. Usually, we have goods within 15-20 days, but if this situation lasts more than a month, there will be a shortage of goods, and all products will be much more expensive. Fuel supply also faces similar problems when it comes to Greece. We therefore predict that this situation may affect all sectors and contribute to inflation”, Chatzitheodosiou concluded. Source: Seatrade-Maritime.
