HAPAG-LLOYD has joined other container line operators in turning around large Asia-bound containerships away from the Red Sea, while two vessels operated by Ocean Network Express remain anchored off Jeddah awaiting a decision on their next moves.

The 15,000 teu Brussels Express (IMO: 9708784), which is operating on Hapag-Lloyd’s Mediterranean to Far East service departed from the port of Jeddah yesterday evening, December 21.

Lloyd’s List Intelligence data confirms the vessel is now returning to the Suez Canal to take the Cape of Good Hope route to Asia. Hapag-Lloyd’s 12,500 teu Southampton Express (IMO: 9447885), which was bound from the US east coast to Asia, has also U-turned in the Red Sea and is returning to the Suez Canal.

Southampton Express had been idling for several days south of the Suez Canal following Hapag-Lloyd’s decision to avoid the Red Sea after a drone attack on its 15,000 teu Al Jasrah (IMO: 9732321) from rebel-controlled Yemen. Southampton Express had already diverted from taking the Panama Canal to the Far East, because of low water levels and the cap on transits through the waterway.

Only Ocean Network Express now has large Asia-bound containerships idle in the Red Sea. The 20,170 teu One Triumph (IMO: 9769271), which was operating eastbound from Europe to Asia, and the 14,000 teu One Apus (IMO: 9806079), serving the US east coast to Asia trade, remain anchored off Jeddah, awaiting a decision on their next moves.

Earlier this week, both Maersk and Cosco ordered a total of four Asia-bound containerships to return to the Suez Canal to avoid potential attack by Houthi rebels in Yemen. 

While all major carriers have now abandoned passage of the Suez-Red Sea route for their Asia-Europe services, some carriers have continued to make calls at ports in Saudi Arabia this week on their voyages from Europe to Asia before returning to the Suez Canal to take the Cape of Good Hope route. 

The 18,000 teu CMA CGM Zheng He (IMO: 9706906), operating on CMA CGM’s French Asia Line service from northern Europe to Asia is due to arrive at Jeddah today, while MSC’s 24,000 teu MSC Gulsun (IMO: 9839430), operating in the Mediterranean to Asia trade, arrived at King Abdullah port yesterday, December 21. A second MSC vessel, the 19,000 teu MSC Oliver (IMO: 9703306), departed King Abdullah port this morning. 

However, many feeder containerships are continuing to make the passage through the danger zone of the Bab el Mandeb Strait. Large bulk carriers, gas carriers, tankers and vehicle carriers are also using the Red Sea-Suez Canal route to and from Europe.

Lloyd’s List estimates that 70 large containerships have now been rerouted via the Cape of Good Hope on the eastbound route and 60 vessels westbound.

The switch is expected to add 20-30 days to round-trip voyages on the Asia-Europe trade and is already having an effect on freight rates, while adding up to $4m in round-trip fuel costs, which are now being passed on to shippers in the form of surcharges of up to $2,500 per teu.

The Shanghai Container Freight Index issued today shows that freight rates from Shanghai to a north European base port have risen by 45% in the past week to $1,497 per teu. For Mediterranean ports, they increased by some 31% to $2,054 per teu.

Further costs to be passed on to shippers will also come from the European Union’s Emissions Trading Scheme tax, which starts in January. An increase in originally anticipated costs from the EU ETS tax will partly depend on whether container line operators decide to increase the speed of their ships, which had been slow steaming at an average of 13 knots amid low freight rates before the Red Sea crisis.

The switch to the Cape of Good Hope route comes only a few weeks before the Chinese New Year, which starts on February 10, prior to which there is an annual rush to export Chinese-made goods before facilities shut down for two weeks. 

Delays in vessels arriving in Asia will also create havoc for the restitution of a large number of empty containers from Europe, creating a shortage of boxes available for Far East exports.