TRANS 95% of container ships now going around Tip of Africa instead of using Red Sea

Millwright

Knuckle Dragger
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IMO, there's enough money in play to make this crap stop...if there was a desire to.

Do the shipping companies make more on the longer route?
 

Lone_Hawk

Resident Spook
Not cost, but net profit.

Is that extra passed through to the customer?

Do they make so much a mile?

I doubt they're running these routes at a loss.

It all depends on the contracts. If they cover this contingency, or not. The cost of going around may be cheaper than the failure to deliver in a specified time. That cost will be spread out to each separate container owned by different people. Either way, expensive to all parties.
 

mecoastie

Veteran Member
It all depends on the contracts. If they cover this contingency, or not. The cost of going around may be cheaper than the failure to deliver in a specified time. That cost will be spread out to each separate container owned by different people. Either way, expensive to all parties.
They can’t deliver on time if they are going around. It adds 10-14 days to the trip. Shipping schedule are a mess and that will impact production if it last very long. Any ship on a fixed schedule is now blown. Schedules completely screwed.
 

Lone_Hawk

Resident Spook
They can’t deliver on time if they are going around. It adds 10-14 days to the trip. Shipping schedule are a mess and that will impact production if it last very long. Any ship on a fixed schedule is now blown. Schedules completely screwed.

Yeah, but probably still cheaper than just floating in the IO waiting it all out....
 
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