Maersk Announces Prolonged Avoidance of Red Sea Routes Amid Escalating Security Concerns
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- Published: Tuesday, 23 January 2024 08:29
Maersk, one of the world's leading container shipping companies, has issued an updated announcement stating its decision to avoid Red Sea routes "for the foreseeable future." The move comes in the wake of repeated drone attacks by Yemen-based Houthi militants, prompting several shipping companies, including Mediterranean Shipping Company (MSC), CMA CGM, Hapag-Lloyd, Cosco Shipping, Evergreen, and ZIM, to reroute their vessels away from the conflict-ridden region.
The decision to divert traffic from the Red Sea has had significant repercussions, causing delays in container shipping traffic through Egypt's crucial Suez Canal. Estimates suggest that ships rerouting around the Cape of Good Hope, instead of navigating the Red Sea, may take anywhere between seven and 20 additional days to reach their destination.
The security situation in the region prompted Maersk to suspend voyages through the Red Sea and the adjacent Gulf of Aden. The company aims to provide customers with "more consistency and predictability" amid the ongoing disruptions. This decision follows a recent attack on one of Maersk's container ships, the Maersk Hangzhou, by Houthi militants. While the attack was successfully thwarted, the uncertain conditions led Maersk to prioritize safety and avoid the region altogether.
As of Thursday, Maersk rerouted four out of five southbound ships that had already passed through the Suez Canal, sending them north into the canal to circumvent Africa entirely. The decision reflects the volatile and evolving nature of the security risk in the Red Sea region.
The ongoing conflict has also raised questions about the effectiveness of Operation Prosperity Guardian (OPG), a U.S.-led multinational maritime security operation initiated to protect ships in the area from missile attacks. Maersk's decision to avoid the Red Sea suggests concerns about the security measures in place.
The recent warning issued by the U.S., the U.K., and 10 international allies to the Yemeni militant group, urging them to stop the attacks, has not deterred the Houthi rebels. In defiance of the warning, the rebels detonated an unmanned, explosives-laden drone boat in the Red Sea, marking the 25th such attack attempted by the Iran-backed Houthi militants.
While Maersk has chosen to reroute its vessels, Hapag-Lloyd has introduced a short-term workaround for shippers by establishing a shuttle service transporting Red Sea cargo via Jeddah. The land-based service aims to connect cargo in the Red Sea market with Europe, North America, and Latin America while bypassing the waterway itself.
The situation remains fluid and underscores the challenges faced by the shipping industry in navigating geopolitical tensions and security threats, with repercussions on global trade routes.