World’s Top Shipping Companies Have No Plans To Resume Operations In Red Sea

Despite a recent ceasefire between Israel and Hamas, the world’s two leading shipping companies, Maersk and Hapag-Lloyd have no immediate plans to resume operations in the Red Sea.

Both companies are carefully monitoring the situation and have stated that they will only return when it is safe.

A spokesperson from Hapag Lloyd told Reuters that they are analysing the impact of the ceasefire on the security of the Red Sea. On the other hand, Maersk says it is too early to predict when operations might resume.

Hapag Lloyd already mentioned in June that a ceasefire alone might not guarantee safe passage through the Suez Canal. The company is concerned about possible attacks from Houthis in the region.

Rearranging shipping schedules for a safe return could take four to six weeks, according to the company.

The Red Sea has become a focal point for attacks over the past year. Increased attacks by Yemen’s Iran-backed Houthis have disrupted maritime operations forcing many shipping companies to reroute their vessels around Africa’s Cape of Good Hope.

These longer routes have increased transit times, raised costs, and severely impacted global supply chains.

Since November 2023, Yemen’s Houthi group has conducted over 100 attacks on merchant ships in the Red Sea, sinking two vessels, seizing one, and killing at least four seafarers.

The group claims these actions are in retaliation to Israel’s military operations in Gaza. In response, the United States has led airstrikes targeting the Houthi movement since January.

Despite these measures, shipping companies remain cautious about returning to the region. The disruptions have resulted in increased freight rates as companies are forced to take longer routes.

Maersk reported last year that demand for container shipping remains high despite these challenges.

Shipping industry organisations have criticised the attacks, describing them as violations of the freedom of navigation and a threat to seafarers’ safety.

References: Reuters, Forbes Middle East

Source: Maritime Shipping News