Growing numbers of shipowners are so concerned about the threat of piracy off the coast of Somalia that they are lengthening voyages by as much as three weeks to avoid the area.

Svitzer, the world’s largest tug operator, last week became the first shipowner to admit publicly it was sending vessels that needed to move between Europe and Asia via the Cape of Good Hope route rather than the Suez Canal.

Intercargo, the international organisation of dry bulk ship operators, said several of its members were also now using the Cape route rather than the Suez Canal.

Intertanko, the international tanker-owners’ organisation, said members were not using the Cape route but some were seeking to send ships only on voyages that avoided the danger area, which has seen 83 attacks and 33 hijackings this year.

The diversions will push up the number of days customers will need to pay to charter a vessel – although, since rates have plunged by more than 90 per cent since May, costs remain only a fraction of a few months ago.

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source: Financial Times