Car carriers must foot the bill to avoid the Red Sea

Car shipping companies are often bound by long contracts. This makes it harder to raise prices to cover the long trip around Africa.
Xavier Leroi EVP and COO of Shipping Services at Wallenius Wilhelmsen says that the decision about a potential surcharge has not been made yet. | Photo: Wallenius Wilhelmsen
Xavier Leroi EVP and COO of Shipping Services at Wallenius Wilhelmsen says that the decision about a potential surcharge has not been made yet. | Photo: Wallenius Wilhelmsen

OSLO

With about 80 percent of the business contract-bound, car carriers are – in contrast to other shipping segments – losing money on diverting ships around the Cape of Good Hope to avoid the Red Sea. 

Already a subscriber?Log in here

Read the whole article

Get access for 7 days for free. No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

With your free trial you get:

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
  • Must be at least 8 characters, including three of: Uppercase, lowercase, numbers, symbols
    Must contain at least 2 characters
    Must contain at least 2 characters

    Get full access for you and your coworkers

    Start a free company trial today

    Share article

    Sign up for our newsletter

    Stay ahead of development by receiving our newsletter on the latest sector knowledge.

    Newsletter terms

    Front page now

    Further reading