The rerouting of vessels away from the Suez Canal where Yemeni militia interference in the Red Sea has disrupted ocean trade, is bringing about a post-Covid-like demand boom for containers out of Asia.
According to information from London, well over 100 container carriers have changed course away from the important Egyptian waterway to alternatively sail around Africa on east-west voyages.
Some sources say this figure is closer to 500, although data supporting this cannot be confirmed.
The longer transit to avoid Houthi rebel attacks on commercial vessels passing through the Horn of Africa’s Bab al-Mandab Strait, which represents six to seven million TEUs, has resulted in a box lag of about 780 000 TEUs, impacting Asian ocean freight ahead of Chinese New Year, which starts on January 21.
Coming at a time when head-haul rates are increasing, carriers have stepped up efforts to send as many boxes to the east to profit from strong container demand.
A fair amount of scepticism has also been raised about the reason for lines to hike rates on Transpacific routes for what’s happening in the Middle East.
