The Swedish Club has announced in its latest warning that the southern routes around South America should be considered a third option for shipowners trading between the eastern coasts of the United States and Asia. This organization has emphasized that the current restrictions in the Panama Canal are manageable for most trades and are not, by themselves, a reason to divert towards southern routes.
Challenges of Using Southern Routes
This warning comes as developments surrounding the Houthis in the Mocha region make the use of the Suez alternative more difficult, and it is expected that shipowners may turn to southern routes sooner than anticipated. Among the challenges present in the southern routes are severe weather and risks associated with cargo movement and prolonged pressure on machinery.
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The Importance of Planning and Risk Assessment
Using the Magellan Strait as a refuge route may be possible, but this route includes narrow channels, strong currents, and reliance on local navigational knowledge. Additionally, in the event of an incident on the southern coasts of Chile, appropriate rescue assistance for a large vessel may not be readily available. Therefore, preparedness for operations in cold weather conditions requires attention to personnel skills, procedures, and available resources.
Attention to pilotage services is also essential. Although passing through the Magellan Strait is generally mandatory, there is an exemption for part of the route for ocean-to-ocean passages. The responsibility for voluntary pilotage costs depends on the terms of the charter agreement. This organization emphasizes the importance of documenting decisions at the time of occurrence, supported by weather forecasts, route advice, and travel records.
Tore Frøysland, Senior Corporate Affairs Advisor at the Swedish Club, stated: "For voyages from the eastern coasts of the United States to Asia, Panama is the first option. The route through the Mediterranean, Suez, and Bab el-Mandeb is usually the next option, provided that the security situation allows. Southern routes are the third option." He also added that using a pilot for crossing the Magellan Strait may be a reasonable choice, even if not mandatory, but owners should not assume that the charterer will cover the cost, and this should be agreed upon before the vessel arrives.
Caroline Pennings, Head of Communications and Sustainability at the Swedish Club, also stated: "Geopolitical fluctuations, the occurrence of more severe weather events, and diminishing respect for the United Nations Convention on the Law of the Sea (UNCLOS) are putting more pressure on established maritime routes. The risk is that disruptions become a normal procedure rather than a series of isolated incidents."
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