Dozen more Cosco megaships skip Suez as carriers add Red Sea surcharges
Large Cosco containerships from Asia, Europe and US east coast are skirting the Suez Canal despite no official announcement about the rerouting
MSC and CMA CGM are imposing surcharges for vessels circumventing via the Cape of Good Hope, reflecting potential magnitude of the rate mark-ups by carriers
COSCO Shipping appears to be following its peers in avoiding the Suez Canal en masse as container shipping carriers start levying additional fees related to the Red Sea route.
Lloyd’s List Intelligence vessel-tracking data shows at least 12 containerships above 10,000 teu under its operation have turned southbound past the Cape of Good Hope, although the Chinese giant has not officially announced the rerouting.
The move comes amid increasing attempts by carriers to ramp up rates citing service disruptions, including imposing new safety-related surcharges.
One of the first Cosco ships to change course was the 21,237 teu Cosco Shipping Solar (IMO: 9795646), which abruptly turned south in the Arabian Sea on December 17 on its westbound trade. It is now off the east coast of Somalia with its Automatic Identification System destination set for Port Louis, Mauritius.
This came after the number of ships attacked by Houthi rebels in the Red Sea climbed to double digits, prompting Maersk and several other carriers to announce their ships would skirt the region.
Additionally, four Cosco headhaul boxships from Asia have also pointed their bows towards the southern hemisphere. Cosco Shipping Nebula (IMO: 9795622) and Cosco Shipping Kilimanjaro (IMO: 9757852) changed course near Sri Lanka and southern India on December 19 and 20, respectively.
Around the same time, Cosco Shipping Libra (IMO: 9783538) and CSCL Saturn (IMO: 9467299) began diverting after exiting the Strait of Malacca.
On eastbound legs, Cosco Shipping Capricorn (IMO: 9783514) and CSCL Neptune (IMO: 9467316), returning from northern Europe, turned back westbound shortly after entering the Mediterranean. The former is nearing waters off Western Sahara, while the latter is transiting the Strait of Gibraltar again.
Cosco Shipping Aries (IMO: 9783497), coming back from Antwerp, is currently near Lisbon with its AIS destination showing it will skip Suez and sail directly for Shanghai’s Yangshan port.
The ships turning southwards also include four returning from the US East Coast.
OOCL Korea (IMO: 9627992) and Cosco Shipping Rose (IMO: 9785809) both made U-turns shortly after entering the Mediterranean. The first which alter its course on December 17 already nears Dakar, Senegal.
Cosco Shipping Sakura (IMO: 9785794) turned south mid-Atlantic without entering the Mediterranean, followed by Cosco America (IMO: 9345427).
Lloyd’s List has reported that the 13,200 teu, Seaspan-owned and Cosco-chartered, Cosco Faith (IMO: 9472141) travelling from the Mediterranean bound for Asia has returned to the Suez Canal having aborted its southbound passage of the Red Sea.
A further two ships, the 21,000 teu Cosco Shipping Galaxy (IMO: 9795634) and Cosco Shipping Andes (IMO: 9757888) are currently at the southern approaches of the canal were understood to be taking similar about-turns.
Cosco did not reply to a request for comment. But transit times on some Asia-Europe sailings on its online booking platform have increased to between 43 and 49 days, suggesting rerouting around the Cape.
Meanwhile, ships still showing normal 30-day transits are in Asian or Chinese waters, meaning they still have some time before departing again, according to tracking data.
Carriers have already pushed rates for January 1 sailings from China to North Europe more than $2,000 per teu, with prices up to $2,500 seen. More extreme market speculators predict levels above $5,000 in the next few weeks.
And two top carriers have already started levying ad hoc surcharges on the route.
CMA CGM invoked clause 10 of its bill of lading to introduce a “Red Sea Charge” ranging from $1,575 per teu to $3,000 per reefer for ships circumventing via the Cape.
“While we understand it may impact your logistics and supply chain operations, it is a necessary step which comes with a cost,” said the French carrier in a customer advisory.
The surcharge applies to all cargo to/from Red Sea ports unless shippers opt for designated hub ports.
Meanwhile, Mediterranean Shipping Co announced surcharges of $1,000 per feu on Europe-Asia and will double that for Red Sea ports Jeddah and King Abdullah.
“The MSC advisory for Europe to Asia gives a view into the potential magnitude of the price increases,” said Vespucci Maritime CEO Lars Jensen in a LinkedIn post. Whether the market will accept the hikes is uncertain, he added.
Jensen previously estimated lines may need up to 1.7m teu of extra capacity to reroute Red Sea services around Africa after the Houthi disruption.