The Swedish Club has warned that southern routes around South America should remain a third option for shipowners between the eastern coasts of the United States and Asia, rather than a standard alternative to the Panama Canal.
Limitations of the Panama Canal and Available Options
In a new warning to its members, the club announced that the current limitations of the Panama Canal remain manageable for most transactions and are not, by themselves, a reason to divert southward. However, there are concerns that developments by the Houthis around Mocha may make the Suez option more difficult to use and push shipowners towards southern routes sooner than expected.
Risks of Southern Routes
Vessels passing through the Drake Passage may face severe weather conditions, which pose risks of cargo shifting and prolonged pressure on machinery. The Strait of Magellan offers a more sheltered route but includes narrow channels, strong currents, and reliance on local navigational knowledge. Access to appropriate rescue assistance for a large vessel may not be readily available after an incident occurs on the southern coast of Chile. Additionally, preparations for operations in cold weather conditions must include crew qualifications, procedures, and available resources. Owners must ensure that the crew is trained and supported to manage fuel heating, fuel maintenance, and machinery operations under expected conditions.
Attention to Pilot Services
The use of pilot services also requires attention. While it is generally mandatory when transiting the Strait of Magellan, exemptions exist for part of the route for qualified ocean-to-ocean crossings. The responsibility for voluntary pilotage costs depends on the terms of the charter agreement. The club emphasizes that a charterer's routing instructions cannot absolve the captain of responsibility for safety. Decisions should be documented at the time and supported by weather forecasts, routing advice, and travel records.
Tore Forsmo, Senior Corporate Affairs Advisor at the Swedish Club, said: "For voyages from the eastern coasts of the United States to Asia, the Panama Canal is the first option. The route through the Mediterranean, Suez, and Bab el-Mandeb is usually the second option, provided the security situation allows. Southern routes are the third option."
Caroline Pennings, Chief Communications and Sustainability Officer at the Swedish Club, added: "Geopolitical fluctuations, the occurrence of more severe weather events, and diminishing respect for the United Nations Convention on the Law of the Sea (UNCLOS) have increased pressure on existing maritime routes. The risk is that disruptions become a normal procedure rather than a series of isolated incidents."
