This review paper provides a structured analysis of obstacle avoidance and route planning algorithms for unmanned surface vehicles (USVs) spanning both numerical simulations and real-world applications. Our investigation encompasses the development of USV route planning from the year 2000 to date, classifying it into two main categories: global and local route planning. We emphasize the necessity for future research to embrace a dual approach incorporating both simulation-based assessments and real-world field tests to comprehensively evaluate algorithmic performance across diverse scenarios. Such evaluation systems offer valuable insights into the reliability, endurance, and adaptability of these methodologies, ultimately guiding the development of algorithms tailored to specific applications and evolving demands. Furthermore, we identify the challenges to determining optimal collision avoidance methods and recognize the effectiveness of hybrid techniques in various contexts. Remarkably, artificial potential field, reinforcement learning, and fuzzy logic algorithms emerge as standout contenders for real-world applications as consistently evaluated in simulated environments. The innovation of this paper lies in its comprehensive analysis and critical evaluation of USV route planning algorithms validated in real-world scenarios. By examining algorithms across different time periods, the paper provides valuable insights into the evolution, trends, strengths, and weaknesses of USV route planning technologies. Readers will benefit from a deep understanding of the advancements made in USV route planning. This analysis serves as a road map for researchers and practitioners by furnishing insights to advance USV route planning and collision avoidance techniques.