Suez Canal reroutes have mixed impact on Singapore SMEs so far

AS CONFLICT in the Red Sea causes ships to be rerouted away from the Suez Canal, some imports from Europe to Singapore may face delays and higher costs, said industry observers – though it is still too early for all importers to be affected.

Estimates of the likely delay vary. EU-Asean Business Council executive director Chris Humphrey expects that reroutes to travel via the Cape of Good Hope will add four to five days of shipping time, with consequent cost increases.

Giacomo Marabiso, managing director of the Italian Chamber of Commerce in Singapore, expects the route via the Cape to add around 3,000 nautical miles to ships’ journeys from North-east Italy, causing a two-week delay.