Cape detour Among the ships heading towards South Africa is the "mega ship" Ever Greet, which is operated by the same Taiwan-based company (Evergreen) as the Ever Given. On Friday morning, the international vessel tracking platform FleetMon reported that another ultra-large container ship, the HMM Rotterdam, was on her way from China to the Netherlands, but made a U-turn around Gibraltar to head away from the Suez towards the Cape. The Hyundai Prestige has also changed course away from the Suez Canal to the Cape, on her way from Thailand to the UK, the shipping platform Marine Traffic reported. A Transnet spokesperson told Business Insider that the detours could result in some vessels using local ports for refuelling services. But there are doubts whether Cape Town harbour in particular will be in a position to benefit from increased traffic. It has been beset with delays in processing ships and freight since last year and strong winds have also disrupted traffic to the harbour. Accordingly, a number of large container ships and shipping lines have reportedly bypassed Cape Town in recent months. "The combination of inclement weather over extended periods and availability of equipment has placed pressure on the entire system, resulting in recent backlogs," Transnet told Business Insider. "However, engagements with industry have been ongoing with integrated planning yielding positive results. Currently, seven cranes are in full operation supported by seven gangs (teams)." Progress with stuck vessel Meanwhile, workers have made "significant progress" and managed to release the Ever Givens ship's rudder from the sediment, a spokesperson for Bernhard Schulte Shipmanagement, the technical manager of the ship, told Business Insider in a statement. But the port side of the ship's bow remains stuck in the sand and mud, noting that 11 tugboats were working throughout Saturday alongside dredging operations to clear the sediment. The head of the Suez Canal Authority confirmed to reporters Saturday that "the ship's stern began to move towards Suez" on Friday night, but said workers stopped their efforts when the tide fell. "We expect that at any time the ship could slide and move from the spot it is in," Suez Canal Authority Chairman Osama Rabie said at a press conference. m* SC MAERSK World's biggest shipping giants send vessels towards SA amid Suez blockage The world's biggest shipping container companies have redirected their vessels to the route around South Africa as the Suez Canal remains blocked. On Saturday, The Guardian reported that the world's biggest shipping group Maersk has rerouted two of its ships, and in a statement issued late on Friday, the second-biggest company Mediterranean Shipping Company (MSC) announced that eleven of its vessels have been rerouted around the coast of South Africa. The Ever Given ran aground in the Suez canal on March 23 due to high winds from a sandstorm. The vessel is one of the world's largest container ships - it's roughly twice the length of the iconic Ponte apartment tower in Johannesburg. "MSC expects this incident to have a very significant impact on the movement of containerized goods, disrupting supply chains beyond the existing challenges posed by the COVID-19 pandemic," MSC said in a statement. More than 90 vessels pass through the canal on a typical day, and with queues building, some of the world's largest ships have changed course away from the Suez, and towards the Cape of Good Hope instead. This includes large oil and gas tankers that have also changed course in the middle of the North Atlantic Ocean before diverting to go around the Cape, CNBC reported. "We are seeing not only containerships rerouting in both directions but also LNG carriers and dry bulkers from the US Gulf of Mexico," Peter Sand, chief shipping analyst at BIMCO, told CNBC. "The vessels are taking a sharp turn to the right in the middle of the Atlantic to head south towards the Cape of Good Hope to avoid the logjam around Suez."

Understanding Business
12th Edition
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Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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1. As a result of the blockage at the Suez Canal, many shipping container companies have redirected vessels to the route around South Africa. Argue in favour of this decision taken by these companies
2. How could South Africa benefit from a number of these container vessels having to pass around the coast of the country?
3. Argue the importance of the Suez Canal Authority to be able to analyse and closely monitor external variables such as heavy winds
4. discuss “supporting infrastructure” and “high investment costs” as disadvantages of water transportation in relation to the Cape Town harbour.
5. 

Cape detour
Among the ships heading towards South Africa is the "mega ship" Ever Greet, which is operated by
the same Taiwan-based company (Evergreen) as the Ever Given. On Friday morning, the
international vessel tracking platform FleetMon reported that another ultra-large container ship,
the HMM Rotterdam, was on her way from China to the Netherlands, but made a U-turn around
Gibraltar to head away from the Suez towards the Cape. The Hyundai Prestige has also changed
course away from the Suez Canal to the Cape, on her way from Thailand to the UK, the shipping
platform Marine Traffic reported. A Transnet spokesperson told Business Insider that the detours
could result in some vessels using local ports for refuelling services.
But there are doubts whether Cape Town harbour in particular will be in a position to benefit from
increased traffic. It has been beset with delays in processing ships and freight since last year and
strong winds have also disrupted traffic to the harbour. Accordingly, a number of large container
ships and shipping lines have reportedly bypassed Cape Town in recent months. "The combination
of inclement weather over extended periods and availability of equipment has placed pressure on
the entire system, resulting in recent backlogs," Transnet told Business Insider. "However,
engagements with industry have been ongoing with integrated planning yielding positive results.
Currently, seven cranes are in full operation supported by seven gangs (teams)."
Progress with stuck vessel
Meanwhile, workers have made "significant progress" and managed to release the Ever Givens
ship's rudder from the sediment, a spokesperson for Bernhard Schulte Shipmanagement, the
technical manager of the ship, told Business Insider in a statement. But the port side of the ship's
bow remains stuck in the sand and mud, noting that 11 tugboats were working throughout Saturday
alongside dredging operations to clear the sediment. The head of the Suez Canal Authority
confirmed to reporters Saturday that "the ship's stern began to move towards Suez" on Friday night,
but said workers stopped their efforts when the tide fell. "We expect that at any time the ship could
slide and move from the spot it is in," Suez Canal Authority Chairman Osama Rabie said at a press
conference.
Transcribed Image Text:Cape detour Among the ships heading towards South Africa is the "mega ship" Ever Greet, which is operated by the same Taiwan-based company (Evergreen) as the Ever Given. On Friday morning, the international vessel tracking platform FleetMon reported that another ultra-large container ship, the HMM Rotterdam, was on her way from China to the Netherlands, but made a U-turn around Gibraltar to head away from the Suez towards the Cape. The Hyundai Prestige has also changed course away from the Suez Canal to the Cape, on her way from Thailand to the UK, the shipping platform Marine Traffic reported. A Transnet spokesperson told Business Insider that the detours could result in some vessels using local ports for refuelling services. But there are doubts whether Cape Town harbour in particular will be in a position to benefit from increased traffic. It has been beset with delays in processing ships and freight since last year and strong winds have also disrupted traffic to the harbour. Accordingly, a number of large container ships and shipping lines have reportedly bypassed Cape Town in recent months. "The combination of inclement weather over extended periods and availability of equipment has placed pressure on the entire system, resulting in recent backlogs," Transnet told Business Insider. "However, engagements with industry have been ongoing with integrated planning yielding positive results. Currently, seven cranes are in full operation supported by seven gangs (teams)." Progress with stuck vessel Meanwhile, workers have made "significant progress" and managed to release the Ever Givens ship's rudder from the sediment, a spokesperson for Bernhard Schulte Shipmanagement, the technical manager of the ship, told Business Insider in a statement. But the port side of the ship's bow remains stuck in the sand and mud, noting that 11 tugboats were working throughout Saturday alongside dredging operations to clear the sediment. The head of the Suez Canal Authority confirmed to reporters Saturday that "the ship's stern began to move towards Suez" on Friday night, but said workers stopped their efforts when the tide fell. "We expect that at any time the ship could slide and move from the spot it is in," Suez Canal Authority Chairman Osama Rabie said at a press conference.
m*
SC
MAERSK
World's biggest shipping giants send vessels towards SA amid Suez blockage
The world's biggest shipping container companies have redirected their vessels to the route around
South Africa as the Suez Canal remains blocked.
On Saturday, The Guardian reported that the world's biggest shipping group Maersk has rerouted
two of its ships, and in a statement issued late on Friday, the second-biggest company
Mediterranean Shipping Company (MSC) announced that eleven of its vessels have been rerouted
around the coast of South Africa.
The Ever Given ran aground in the Suez canal on March 23 due to high winds from a sandstorm. The
vessel is one of the world's largest container ships - it's roughly twice the length of the iconic Ponte
apartment tower in Johannesburg. "MSC expects this incident to have a very significant impact on
the movement of containerized goods, disrupting supply chains beyond the existing challenges
posed by the COVID-19 pandemic," MSC said in a statement.
More than 90 vessels pass through the canal on a typical day, and with queues building, some of
the world's largest ships have changed course away from the Suez, and towards the Cape of Good
Hope instead. This includes large oil and gas tankers that have also changed course in the middle of
the North Atlantic Ocean before diverting to go around the Cape, CNBC reported.
"We are seeing not only containerships rerouting in both directions but also LNG carriers and dry
bulkers from the US Gulf of Mexico," Peter Sand, chief shipping analyst at BIMCO, told CNBC. "The
vessels are taking a sharp turn to the right in the middle of the Atlantic to head south towards the
Cape of Good Hope to avoid the logjam around Suez."
Transcribed Image Text:m* SC MAERSK World's biggest shipping giants send vessels towards SA amid Suez blockage The world's biggest shipping container companies have redirected their vessels to the route around South Africa as the Suez Canal remains blocked. On Saturday, The Guardian reported that the world's biggest shipping group Maersk has rerouted two of its ships, and in a statement issued late on Friday, the second-biggest company Mediterranean Shipping Company (MSC) announced that eleven of its vessels have been rerouted around the coast of South Africa. The Ever Given ran aground in the Suez canal on March 23 due to high winds from a sandstorm. The vessel is one of the world's largest container ships - it's roughly twice the length of the iconic Ponte apartment tower in Johannesburg. "MSC expects this incident to have a very significant impact on the movement of containerized goods, disrupting supply chains beyond the existing challenges posed by the COVID-19 pandemic," MSC said in a statement. More than 90 vessels pass through the canal on a typical day, and with queues building, some of the world's largest ships have changed course away from the Suez, and towards the Cape of Good Hope instead. This includes large oil and gas tankers that have also changed course in the middle of the North Atlantic Ocean before diverting to go around the Cape, CNBC reported. "We are seeing not only containerships rerouting in both directions but also LNG carriers and dry bulkers from the US Gulf of Mexico," Peter Sand, chief shipping analyst at BIMCO, told CNBC. "The vessels are taking a sharp turn to the right in the middle of the Atlantic to head south towards the Cape of Good Hope to avoid the logjam around Suez."
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