Shipping firms redirect vessels from Red Sea as Houthi attacks increase

Cairo – December 19, 2023: Attacks on vessels crossing the Red Sea by Yemen's Houthi group have increased concerns over crew and cargo safety, leading to multiple shipping companies diverting ships away from Egypt’s Suez Canal, reducing the number of vessels passing through one of the world’s main trade routes.

The Houthis have been attacking ships in the Red Sea in response to Israel's war in Gaza, targeting a route that would take ships through the Suez Canal in the north and its link to the Mediterranean Sea.

Shipping companies choosing to reroute will have to deal with additional costs and time to their journeys, causing oil prices and war risk insurance premiums to climb at a rapid rate.

BP, alongside fellow shipping companies, has announced a suspension of their vessels - whether owned or chartered - from traversing maritime routes connecting Europe and Asia.

Equinor, the Norwegian oil and gas company, revealed on Monday that it has already redirected certain vessels initially bound for the Red Sea.

This was followed by Euronav, a Belgian oil tanker firm, declaring its decision to divert ships away from the Red Sea until further notice.

Evergreen, the Taiwanese container shipping line, directed its vessels to sail to nearby safe waters until new instructions were provided. Ships already en route have been diverted to the Cape of Good Hope, and Reuters reported a temporary halt in accepting Israeli cargo.

Frontline, the Norway-based oil tanker group, has instructed its ships to avoid passages through the Red Sea and the Gulf of Aden.

On December 18, Hapag Lloyd, the German shipping company, announced a redirection of ships to the Cape of Good Hope until the safety of passage through the Suez Canal and the Red Sea can be guaranteed. This decision followed a drone strike near Yemen that targeted one of the company’s vessels.

HMM, A South Korean shipping company, has directed ships departing from Europe, which would typically travel through the Suez Canal, to instead take the route via the Cape of Good Hope.

CMA CGM, the French shipping company, announced a cessation of all container shipments through the Red Sea.

Over the weekend, A.P. Moller-Maersk, the Danish shipping company, disclosed a decision to pause all container shipments through the Red Sea, citing a near-miss incident reported on Friday.

Ships under the Mediterranean Shipping Company (MSC) will not transit through the Suez Canal, with some already rerouted to the Cape of Good Hope. This change was announced one day after the Yemeni group fired two ballistic missiles at MSC’s Palatium III vessel.

Orient Overseas Container Line shared that it would decline cargo to and from Israel until further notice.

Yang Ming Marine Transport from Taiwan has revealed plans to reroute ships to the Cape of Good Hope for the next two weeks.