More MPP carriers pick Cape Of Good Hope, sailing away from Suez

The war in Gaza and subsequent hostilities and increasing risk in the Middle East have started pushing MPP index rates up but also pushed a larger number of vessels on a long way around Africa. 

Thanks to its partnership with Esgian, Toepfer Transport highlighted the switch that carriers have made since attacks on merchant ships started in the Red Sea. Due to the Houthi attacks, seafarers as well as the goods onboard are severely endangered. Despite the pressure which comes concerning the timely delivery of cargo, it has to be kept in mind that shipowners and carriers bear a high level of responsibility for the life, health and safety of the seafarers.

This has caused a significant shift in the MPP fleet routing. According to the figures provided by Esgian for February 2024, 100 MPP ships sailed around the Cape of Good Hope versus 37 vessels that headed through the Suez Canal. This means there was a total of 137 sailings, 73 per cent of which took the Cape of Good Hope route, and 27 per cent taking the Cape Suez.

Read more: MPP Index rises as carriers rush to secure capacity

This is opposite to the February 2023 data when 41 MPP ships took the Cape of Good Hope route and 70 vessels headed through the Suez Canal. Out of the total 111 sailings, only 37 per cent took the longer way around Africa, with 63 per cent heading through the Suez Canal.

All this, coupled with a slow and steady increase in demand and utilisation, has led to more optimism with the carriers in regards to charter rates, Teopfer Transport said in its report. According to the shipbroker, this high and rapidly increasing risk of war and war-like situation will surely have a strong impact on the future development of the index rate.