A ship carrying steel coils from the South Korean steel manufacturer POSCO to a buyer in Turkey was hijacked off the coast of Somalia. The ship, executing its journey through the trading company Samsung, is now under negotiations by POSCO with the pirates for its release. The vessel Ruen, registered under the Maltese flag and with a deadweight tonnage of 41,607 tons, was scheduled to arrive at Gemlik port in Turkey on December 13th. Market insiders claim that the ship was carrying about 40,000 tons of coil material for several buyers, including a pipeline manufacturer and an automobile producer.
According to ship tracking software, the vessel entered the dangerous area of the Gulf of Aden/Southern Red Sea on December 15th and has been off the central coast of Somalia since December 18th.
A spokesperson for Western England Insurance Services, providing insurance for the ship, stated that they are closely cooperating with relevant authorities on this matter and cannot comment further at this time.
Turkish steel industry operators suggest that this hijacking might disrupt shipments from Asia to the region, thereby supporting coil prices. Dealers and Turkish buyers suggest that shipowners and charterers might opt for alternative routes that are longer and more costly, like rounding the Cape of Good Hope and the East Coast of Africa, avoiding the Red Sea/Suez Canal route. This would also affect the cost of voyages to the Mediterranean region. It’s estimated that this could add an additional 35 days to shipping times.
Due to recent attacks on container ships, transportation through the Red Sea/Suez Canal route has become complicated. Many carriers have recently indicated that they will also circumnavigate the Cape of Good Hope, increasing costs and transit times.
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