The attacks have led several shipping companies to re-route vessels to ensure the safety of their crew and cargo, however, this incurs additional cost and time to their journeys, causing oil prices and war risk insurance premiums to climb rapidly
Increased attacks by Yemen's Houthi group on the Red Sea have prompted more shipping companies to divert away from Egypt’s Suez Canal, reducing the number of vessels passing through one of the world’s main trade routes.
The group is currently targeting a route that would take ships through the Suez Canal in the north and its link to the Mediterranean Sea. According to the group, it aims to support the Palestinians by pursuing vessels with ties to Israel.
The attacks have led several shipping companies to re-route vessels to ensure the safety of their crew and cargo, however, this incurs additional cost and time to their journeys, causing oil prices and war risk insurance premiums to climb rapidly.
Related > Suez Canal Authority keeping close eye on Red Sea situation, traffic remains normal so far
Oil giant BP announced yesterday that it is joining other shipping companies in pausing its ships, whether its own or chartered, from passing through maritime routes that link Europe and Asia.
Norwegian oil and gas company Equinor announced on Monday that it had already re-routed some vessels heading towards the Red Sea, followed by Belgian oil tanker firm Euronav which shared that it would divert ships away from the Red Sea until further notice.
Taiwanese container shipping line Evergreen stated that its vessels have been directed to sail to nearby safe waters until provided with new instructions, while ships already on route have been diverted to the Cape of Good Hope. It also temporarily stopped accepting Israeli cargo, according to Reuters.
Norway-based oil tanker group Frontline will have their ships avoid passages through the Red Sea and the Gulf of Aden.
German Hapag Lloyd revealed on December 18 that it would redirect ships to the Cape of Good Hope until the safety of passage through the Suez Canal and the Red Sea could be guaranteed. One of the company’s vessels was hit by what is currently believed as a drone strike on Friday while passing close to the coast of Yemen.
South Korea’s HMM has ordered ships departing from Europe that would typically travel through the Suez Canal to the Cape of Good Hope.
French CMA CGM shared that it was stopping all container shipments through the Red Sea.
Danish shipping company A.P. Moller-Maersk revealed over the weekend that it would pause all container shipments through the Red Sea. Maersk reported a near-miss incident on Friday.
Ships under the Mediterranean Shipping Company (MSC) will not transit through the Suez Canal, with some already diverted to the Cape of Good Hope. The company announced the change one day after the Yemeni group fired two ballistic missiles at its MSC Palatium III vessel.
Orient Overseas Container Line (OOCL) shared that it would decline cargo to and from Israel until further notice.
Yang Ming Marine Transport from Taiwan revealed that it would reroute ships to the Cape of Good Hope for the next two weeks.
