Ore and grain companies try to force shipowners to use the Suez Canal – FT

Companies trading in iron ore and grain have threatened legal action and tried to change the terms of the contract to force shipowners to use the Suez Canal route, which is more dangerous but also cheaper and faster. This was reported by the Financial Times.

Many Western ship operators have diverted almost all voyages that normally use the Suez Canal and the Red Sea to the longer route through the Cape of Good Hope since the Houthis began their attacks in November.

However, Michael Boduroglu, chairman of Athens-based Allseas Marine, said some companies wishing to charter his so-called dry bulk vessels have asked to remove the “wartime” clause from the contract. According to him, so far he does not know of any shipowner who would agree to do so.

“It is a huge risk for the owner to agree to this. What will he do if there is an active war that creates risks for all ships? His liability will be huge,” he said.

One maritime lawyer said charterers regularly tell shipowners that current conditions off Yemen, where Iranian-backed Houthis have launched more than 30 attacks on ships, are not dangerous enough to change the route.

The lawyer, who wished to remain anonymous, said that the charterers were concerned that end customers might refuse to pay for cargo delivered late. He said that these charterers had warned shipowners that they could claim damages for late delivery of diverted goods.

As a reminder, freight rates from the ports of Greater Odesa to China have increased due to the cost of insurance against risks associated with the Red Sea.

Tags: Yemen