Alan Patrick Ryan. About a week ago. 21st dec 2023?Ferroalloys...

Alan Patrick Ryan. About a week ago. 21st dec 2023?


Ferroalloys shipments from India and Asia held hostage by the Canals; prices spike as shipping companies raise prices
ON DECEMBER 19, 2023 BY ALANPATRICKRYANEDIT
The Canals have become the chock points of world seaborne trade. First the transit along the Panama Canal has slowed to a snails pace and now the Suez Canal has been suffering with the apparent shutdown on transit over the Red Sea. For the Panama Canal, ferroalloys shipments from Asia, including Malaysia, and China, have been affected, while ferroalloy shipments from India are being affected by the Suez Canal.

While seaborne trade is continuing, the shipping companies are asking to renegotiate or adding surcharges for the workarounds of sending their shipments past the Capes instead of using the Canals. This has triggered shipping delays and extra fuel charges and some shipping charges have doubled and tripled. In the case of shipments over the Red Sea there are wartime surcharges.

“The ferroalloys will eventually get to their assigned locations, but the prices will be higher. Already in Europe spot prices have gone up €200-300 per mt based on availability and are heading higher,” one supplier explained. “Also shipments for the first quarter probably won’t make it until February. The real problem will start in January.”