The rerouting of merchant ships around the Cape of Good Hope instead of crossing the Bab-el-Mandeb is not the only reason vessel operating costs are increasing.
A new Drewry analysis said the rerouting of merchant ships around the Cape of Good Hope has not only led to significant changes in trade patterns and tonne-mile demand but has also resulted in certain operational challenges, especially regarding the procurement of certain stores and spare items.
The independent maritime research consultancy firm said the Port of Suez had been used as a main procurement hub by many vessel operators crossing the Suez Canal with their ships before re-routing.
"For these operators, the current number one alternative is South Africa, where prices can be significantly higher, albeit – as usual – depending on fleet size and existing relationships with sellers among else."
It noted that the increase in the cost of stores and spares seen in 2024 across the global vessel fleet (estimated at 5.4% and 5.5%, respectively) cannot be justified exclusively by the above.
"Based on Drewry's annual survey of ship operating costs, cost increases did not only occur to those with vessels re-routing around Africa," Drewry said.
"After a few years with low growth in costs due to operators delaying repairs and procurement, a pick-up was expected following the strong price increases in the 2021/22 period."
It added that since then, prices have decreased only slightly and even increased in some instances amidst the current shipbuilding boom.
"On top of the current trend described above, further geopolitical issues and regulations and the resulting supply chain bottlenecks would facilitate the potential for a significant upside risk for most ship operating costs," the new analysis said.
