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Shipping companies are routing Asia to Northern Europe voyages around the Cape of Good Hope more often to avoid Suez Canal fees of US$500,000 to $750,000, per SeaIntelligence's Lars Jensen. Low fuel costs make the longer route economical, and the Suez Canal Authority has increased its discounts to compete.
Longer routings absorb more vessel capacity and push up ocean freight rates on Asia-Europe lanes, while shifting cost economics for bulk grain and feed carriers.
freshplaza.comMay 27, 2020Not enough comparable past events yet for a historical read.
After 36 past logistics events, Crude Oil (Brent) moved a median +0.2% over 5 sessions (50% higher; middle half -4.6% to +3.2%), and +1.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
