ANALYSTS suggest that liner shipping require some 1.7 million TEU of additional capacity to reroute services that would have used the Suez Canal, now blocked by Houthi attacks, reports London's Lloyd's List.
According to Vespucci Maritime CEO Lars Jensen rerouting all containership traffic around Africa would absorb five to six per cent of global capacity.
Despite the current climate of overcapacity, Mr Jensen believes this adjustment is feasible.
To address this challenge, he estimates that the box ship segment might need around 1.4 million to 1.7 million TEU of additional capacity.
This includes multiple container line services that typically transit the Red Sea, such as routes from Asia to northern Europe, Asia to the Mediterranean, India to Europe and Asia to the US east coast.
'Drought in the Panama Canal means vessels on the Asia to US east coast route cannot use the Panama canal, and this will result in more significant disruptions for such vessels,' said Mr Jensen.
He also noted how the real containership freight rate effect will not be felt for four weeks.
SeaNews Turkey
According to Vespucci Maritime CEO Lars Jensen rerouting all containership traffic around Africa would absorb five to six per cent of global capacity.
Despite the current climate of overcapacity, Mr Jensen believes this adjustment is feasible.
To address this challenge, he estimates that the box ship segment might need around 1.4 million to 1.7 million TEU of additional capacity.
This includes multiple container line services that typically transit the Red Sea, such as routes from Asia to northern Europe, Asia to the Mediterranean, India to Europe and Asia to the US east coast.
'Drought in the Panama Canal means vessels on the Asia to US east coast route cannot use the Panama canal, and this will result in more significant disruptions for such vessels,' said Mr Jensen.
He also noted how the real containership freight rate effect will not be felt for four weeks.
SeaNews Turkey