# Shipping companies opt for Cape of Good Hope route more often

> 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.

- Date: 2020-05-27 · published 2020-05-27T12:00:00.000Z
- Category: logistics · region Global · magnitude low
- Page: https://feedsoft.ai/events/53026-shipping-companies-opt-for-cape-of-good-hope-route-more-often
- Commodities: [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

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.

## Read by commodity

- BRENT: bearish ▼
- OCEANFRT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2020-05-22 | [Suez Canal suffers double blow from pandemic, collapse of oil prices \| Mohamed Hammad \| AW](https://feedsoft.ai/events/53022-suez-canal-suffers-double-blow-from-pandemic-collapse-of-oil-prices-mohamed.md) | -1.9% | +19.3% |
| BRENT | 2023-03-20 | [European diesel tightens, crude weakens as French refinery outages linger](https://feedsoft.ai/events/37028-european-diesel-tightens-crude-weakens-as-french-refinery-outages-linger.md) | +3.2% | +18.3% |
| BRENT | 2021-03-26 | [Ringgit falls as oil slumps due to Suez Canal blockage](https://feedsoft.ai/events/48388-ringgit-falls-as-oil-slumps-due-to-suez-canal-blockage.md) | +4.5% | +7.1% |
| BRENT | 2025-11-17 | [Oil prices ease after loadings resume at Russian export hub \| Reuters](https://feedsoft.ai/events/22107-oil-prices-ease-after-loadings-resume-at-russian-export-hub-reuters.md) | -2.0% | -3.6% |
| BRENT | 2017-08-30 | [Oil prices continue downward trend triggered by Harvey - UPI.com](https://feedsoft.ai/events/69605-oil-prices-continue-downward-trend-triggered-by-harvey-upi-com.md) | +3.3% | +14.1% |

## Sources

- freshplaza.com: https://www.freshplaza.com/north-america/article/9220117/shipping-companies-opt-for-cape-of-good-hope-route-more-often/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.