Shipping Lines Avoid Suez Canal

International shipping lines in Asia are shunning the Suez Canal route to Europe and diverting around South Africa to avoid the danger of missiles and mines in the Persian Gulf.

Faced by warnings that vessels enter the war-torn gulf at their own risk, soaring insurance premiums and increased surcharges and fuel costs, shippers carrying freight between Asia and Europe are increasingly opting for the longer trip around the Cape of Good Hope.

“The diversion is necessary for the safety of crew members and to avoid paying high insurance charges,” said a spokesman for Singapore’s national carrier, Neptune Orient Lines, although the delay makes shipments more costly.

The switch adds 14 days to a round trip, which now requires 70 days. It also has resulted in a shortage of cargo space because ships have to stay at sea longer, adding to operational and manpower costs.