The marine insurer said a Cape Horn passage presents different operational risks that require careful voyage planning. Vessels may encounter severe weather, high winds, heavy seas, strong currents and rapidly changing conditions in waters around the southern tip of South America.

The warning comes as the Panama Canal faces reduced transit capacity and draft restrictions linked to lower-than-expected rainfall and concerns over water availability. These conditions have contributed to congestion, longer waiting times and higher costs for some vessels seeking passage through the waterway.

The Swedish Club advised operators considering the Cape Horn route to assess vessel condition, stability, cargo securing, weather routing, fuel requirements and crew readiness before making the voyage.

While sailing around South America can avoid Panama Canal delays and transit costs, the longer distance and more demanding sea conditions can introduce additional operational and safety risks.