An ultra-large containership belonging to CMA CGM is bypassing the Suez Canal on its return trip to Asia, adding some 3,000 miles and five days to the journey as impacts of coronavirus and low oil prices ripple across the supply chains.
The 16,022 TEU capacity CMA CGM Alexander Von Humbolt last called in Algeciras, Spain on March 27 and was last tracked underway off of West Africa as of March 31. The vessel has a destination of Port Klang, Malaysia with an expected arrival of April 21, making for a total transit time of 26 days, as opposed to the typical 21-day transit.
The detour of the CMA CGM Alexander Von Humbolt was first pointed out by Lars Jensen, CEO of SeaIntelligence Consulting.
“The trip is more than 3000 nautical miles longer and the speed is increased by more than 2 knots for the journey despite the added 5 days to the schedule,” writes Lars in a post on LinkedIn.
CMA CGM Alexander Von Humbolt operates on the Ocean Alliance’s French Asia Line 1 (FAL 1). The eastbound leg of the route typically has ships travel through the Suez Canal after calling in northern Europe.
While unusual, re-routing ships around the southern tip of Africa and South America to avoid Suez Canal and Panama Canal tolls is not unheard of.
In 2015-2016, as the container shipping industry struggled with severe overcapacity and ultra-low bunker fuel prices, more than 100 vessels deployed on Asia-U.S. East Coast and Asia-North Europe services made backhaul trip to Asia by traveling around the Cape of Good Hope instead of the Suez route.
The re-routing of the Alexander Von Humbolt comes amid a historic crash in oil prices brought on by the coronavirus pandemic and the Russia-Saudi oil price war. Even though the ship will burn more fuel by taking the long way around, avoiding the high cost of the Suez Canal toll can in some instances actually make the trip more economical.
“The canal already has a 45-65% discount scheme for USEC vessels to prevent re-routing. A few days ago they announced a 6% discount for European vessels – but as is evident with the CMA vessel that is not sufficient to prevent round-Africa routings,” said Lars.
It wasn’t immediately clear if any of the other 11 vessels on the FAL 1 route were also being re-routed.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 105,871 members that receive our newsletter.
Have a news tip? Let us know.
By Brendan Murray Apr 13, 2024 (Bloomberg) –The owner of the ship that destroyed Baltimore’s Francis Scott Key Bridge has started a formal process in which companies that own goods on...
By David Brunnstrom and Simon Lewis WASHINGTON, April 12 (Reuters) – The Philippines is determined to assert its sovereign rights in the South China Sea, its foreign secretary said on Friday at a meeting...
By Gavin van Marle (The Loadstar) – While container spot rates on the Asia-Europe and Asia-North America trades continued to remain elevated, year on year, due to the Red Sea crisis,...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 105,871 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
