News / Diversions from Red Sea proving a real ‘silver lining’ for carriers

Cape of Good Hope © Pitchi

The current equilibrium between supply and demand in container shipping depends on the duration of the Red Sea attacks, and the effect on available capacity, as ships take longer routes via the Cape of Good Hope.

Attacks on commercial shipping by Houthi rebels in the Red Sea have kept elderly tonnage, that would otherwise have been sold for scrap, gainfully employed at a premium for shipowners and, moreover, soaked up the huge number of newbuild vessels being delivered each month.

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