Wed Dec 04 02:40:00 UTC 2024: ## Red Sea Crisis Alters Global Shipping Routes, Increasing Demand for Larger Vessels
**London, UK** – The ongoing crisis in the Red Sea has significantly impacted global containership deployment, according to a new report by Clarksons, a leading shipbreaking firm. The rerouting of vessels around the Cape of Good Hope to avoid attacks has led to increased demand, particularly for larger ships (12,000-17,000 TEU).
The report highlights a shift in deployment patterns. Smaller vessels previously cascaded from Asia-Europe lanes are returning, increasing the share of smaller ships on that route. Conversely, the share of larger vessels on transpacific routes has grown, but the Red Sea rerouting has offset this, keeping the overall share relatively stable. However, the need for larger vessels to navigate the longer Cape route has significantly increased their deployment on Far East-South America routes, rising from 19% to 37% between January and December 2023.
Clarksons analyst Thomas Grant notes that while the impact is not as widespread as during the COVID-19 pandemic, the Red Sea disruption has caused noticeable changes in deployment trends for larger vessels. The increased distance necessitates more ships to maintain demand, creating ripple effects across multiple shipping lanes. The report contrasts this with the supply pressure seen in 2023 due to new vessel deliveries, which was most acute in the larger ship segments.
The news follows a week of significant developments in the shipping industry, including: new container orders from Evergreen, a CMA CGM policy reversal due to customer pressure, and continued concerns regarding port strikes and the ongoing war in Ukraine. The Red Sea crisis, coupled with these other factors, underscores the ongoing volatility and uncertainty in the global supply chain.
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