Maersk avoids Strait of Hormuz

Maersk said on May 12 that it will continue avoiding the Strait of Hormuz, keeping container services on longer routings around the Cape of Good Hope as security risks in the Gulf persist. The Danish shipping group had already suspended vessel crossings in the strait in March and rerouted two services around southern Africa, and its latest advisory said any return would depend on ongoing risk reviews and guidance from authorities and security partners. The decision extends a logistics pattern that has spread well beyond one chokepoint. Since late 2023, attacks in the Red Sea had already pushed many carriers away from the Suez route, and UNCTAD said diversions around the Cape of Good Hope were cutting into canal traffic and lengthening voyages. A World Bank brief said that by end-2024 vessel traffic through the Suez Canal and Bab el-Mandeb Strait had fallen by about three-fourths from pre-crisis levels, forcing ships onto longer routes around Africa. (maersk.com) ### Why is Maersk still staying out of the strait? Maersk said on May 4 that “as of now, transit through the Strait should be avoided,” adding that any decision to resume crossings would be based on continuous risk assessments and close monitoring of the security situation. The company also said it was watching a U.S. government initiative affecting vessels inside the strait, but had not changed its broader stance. (unctad.org) March 1 was the point when Maersk formalized the shift. In that advisory, the company said it would reroute its ME11 and MECL services around the Cape of Good Hope and was suspending all vessel crossings in the Strait of Hormuz until further notice. It said ports in the Arabian Gulf could face delays, rerouting and schedule adjustments as a result. (maersk.com) ### Which parts of Maersk’s network have changed? ME11 and MECL are the named services Maersk has publicly identified as rerouted around the Cape. Maersk describes ME11 as linking the Middle East and India with the Mediterranean, and MECL as linking the Middle East and India with the U.S. East Coast. The company has also built out landbridge and domestic alternatives inside the Gulf. (maersk.com) Its May 4 update listed carrier-haulage and land-bridge options via Jeddah, Aqaba, Khor Fakkan and other regional nodes, while also saying some landside bookings remained temporarily paused. That means cargo owners are dealing not only with a longer ocean leg, but also with more handoffs between ports, trucks and inland corridors. ### What does the Cape route change for shippers? The World Bank said trade diversion around the Cape of Good Hope sharply increased travel distances and times for vessels that had used the Red Sea, with cargo-ship travel distances up 48% by October 2024 against a pre-conflict baseline. UNCTAD said many shipping companies had opted for that alternative route in response to security threats. (maersk.com) Longer voyages usually mean more schedule padding, fewer rotations per vessel and more pressure on equipment positioning. Maersk has responded with customer advisories on detention, empty returns, fuel surcharges and emergency freight increases tied to the disruption in and around Hormuz. ### Is insurance the main reason ships are not transiting? (documents1.worldbank.org) The Lloyd’s Market Association said on March 23 that marine war insurance for Strait of Hormuz transits remained available and that reports suggesting cover had been cancelled or had become unaffordable were “not accurate.” The group said 88% of surveyed participants still had appetite for international hull war risks and more than 90% for international cargo. (maersk.com) The same statement said the reason ships were not moving was not a lack of insurance but the level of risk to crew and vessel safety as assessed by shipowners and masters. Liability coverage through P&I clubs remained in place, while some fixed-premium charterer covers had been cancelled and repriced, according to the association. (lmalloyds.com) ### Where will shippers see the next changes? Maersk said on May 12 that it would keep updating its Middle East advisories page, which now serves as the running noticeboard for vessel, port and landside changes tied to the Gulf disruption. The company’s latest notices point customers to shipment tracking tools and local representatives for cargo-specific changes. (lmalloyds.com) Maersk’s next move will hinge on a new security assessment rather than a fixed timetable. Until that changes, the company’s published routing plan keeps Gulf-related services on contingency patterns that include Cape diversions, land-bridge alternatives and periodic booking restrictions. (maersk.com 1) (maersk.com 2)