Ships on the Long Way Round
Security risks across the Red Sea and Bab-al-Mandeb Strait have pushed carriers to reroute vessels around the Cape of Good Hope — adding up to three weeks to global schedules. What was meant to be a temporary fix has turned into a long-term headache, driving up bunker use, crew hours and insurance costs. It’s another reminder of how fragile global shipping networks remain, even two years after the pandemic.
The Ripple Effect Down Under
Australian importers are already feeling the pinch. Extended transit times and higher bunker surcharges are feeding through to the retail shelf, while exporters are finding it harder to secure containers as vessel rotations slow. Shortages of 20s and 40s in regional grain zones are back, and working capital is being stretched as goods sit at sea longer than planned.
Keep the Cargo Moving
- Book early, not last-minute: Space out of Singapore and Port Klang is tightening again — plan at least three weeks ahead.
- Know your routing: Ask your carrier whether your box is sailing via Suez or the Cape; transit times vary sharply.
- Lock rate validity: Include bunker and congestion clauses so you don’t get stung mid-shipment.
- Think local: Secure equipment early with depots if you’re moving agri cargo before harvest peaks.
Source: Lowy Institute – Navigating Long-Term Red Sea Disruptions (Oct 2025); UNCTAD Maritime Market Outlook (Sep 2025).
Disclaimer – Market data is from public sources we consider reliable but has not been independently verified; accuracy is not guaranteed