Two shipping giants Hapag-Lloyd and Maersk, are pausing their travel through the Red Sea and the Bab el-Mandeb Strait in the Middle East following a series of attacks on their vessels by Iranian-backed Houthi militants from Yemen.
Maersk, the world’s second-largest container shipping company, responsible for 14.8% of global trade, has announced the diversion of ships away from the Red Sea due to heightened security concerns. The Houthi group, which supports Hamas, has targeted vessels heading for Israel, prompting Maersk to prioritize the safety of its employees. Following recent attacks in the area, Maersk vessels passing through the Bab al-Mandab Strait will pause their journeys until further notice. Hapag-Lloyd, controlling about 7% of the global container ship fleet, also plans to pause container ship traffic through the Red Sea until Monday, with further decisions to be made thereafter. Two shipping giants
The Bab el-Mandeb Strait, a crucial waterway connecting the Red Sea to the Gulf of Aden and the Arabian Sea, is vital for global trade, including the transportation of containers and petroleum from the Persian Gulf. Approximately 12% of the world’s trade, including 30% of global containers, passes through the Suez Canal, linking to the Red Sea and Bab el-Mandeb. The Suez Canal gained global attention in March 2021 when the Ever Given container ship was stuck for six days. Maersk is expected to provide more details about its next steps in the coming days.
Israel based ocean carrier ZIM has re-routed vessels to avoid the Arabian and Red Seas to safeguard their vessels and crew amid the threats by the Houthis. The vessels are traveling around the Cape of Good Hope in South Africa. This alternative route to the Indian Ocean adds 10 to 14 days of travel time to a vessel’s journey. The long way around Africa also incurs higher fuel costs because of the longer travel distance.