Nearly two-thirds of Far East-Europe has returned to the Suez Canal

Some 63% of the ocean capacity deployed between the Far East and Europe has returned to the Red Sea, following three years of detours.

Having surveyed the 10 largest carrier networks over the past month, Alphaliner found vessels on 24 of the 46 direct Far East–Europe services were transiting the Red Sea, accounting for 70% of deployed capacity on Far East-Mediterranean routes. On the Far East-North Europe trades, the number was a little lower, 58%.

However, the Suez return remains something of a mixed bag, with multiple services opting to transit the Bab-el-Mandeb Strait on outbound routes to Europe, but electing to sail around the Cape on return journeys.

Although the geopolitical situation has suggested room for this manoeuvre by the carriers, it is also believed to be partly driven by economics, the lines eyeing the benefits of reducing fuel consumption at a time when bunker prices remain elevated. According to Alphaliner, very-low sulphur fuel oil (VLSFO) has been trading at $881 per tonne on the Singapore spot market, leaving it up 97% year on year in a moment.

Source: theloadstar.com