Top Shipping Companies Worldwide are Unlikely to Operate in the Red Sea
Posted on Jan 31, 2025 at 10:01 PM
Following the announcement of the truce between Israel and Hamas, two of the biggest shipping firms in the world, Maersk and Hapag-Lloyd, have stated recently that they did not anticipate a rapid return to the Red Sea.
Both companies stated that they would keep a careful eye on the Middle East scenario and go back to the Red Sea when it was safe to do so.
“The agreement has only just been reached. We will closely analyse the latest developments and their impact on the security situation in the Red Sea,” declared a Hapag-Lloyd representative.
Similarly, a Maersk representative noted, “It is still too early to speculate about the timing.”
Shipping Companies: Disruptions Force to Reroute
Hapag-Lloyd warned in June that a ceasefire wouldn't guarantee immediate passage through the Suez Canal due to potential Houthi militant attacks, and suggested rearranging the schedule would take four to six weeks.
Moreover, Middle East disruptions have led shipping companies to shift their vessels to longer routes, often causing container ships to halt around Africa's Cape of Good Hope, increasing freight rates.
Since November 2023, Houthis have carried out over 100 attacks on ships crossing the Red Sea, claiming solidarity with Palestinians in Gaza.
Tragically, they have sunk two vessels, seized another, and killed at least four seafarers, disrupting global shipping and forcing firms to reroute to longer, more expensive journeys around southern Africa.
The defence of commercial routes, maritime assets, and safeguarding of seafarers and naval resources against threats are among many topics the Maritime Safety Courses in London refer to. They entail measures to stop unlawful acts and to guarantee the security of ports, infrastructure, and ships.
Analysing Houthi Strategy Amidst Shifting Dynamics
Maritime security authorities expect the Houthis to proclaim a halt to Red Sea ship attacks, citing an email postponing a scheduled security briefing as a possible indication. Experts identified an email from the group as a potential indicator.
Besides, Dimitris Maniatis, CEO of maritime security company Marisks, stated that British, American, and Israeli strikes have effectively limited Houthis attacks, providing them with a pretext to announce a ceasefire.
Remarkably, a marine security officer has predicted an announcement, and some businesses are gearing up to restart travelling the Red Sea. It's too early to predict when traffic will return, though. With declining insurance premiums, the insurance market will show the first indications of company recovery. A second marine officer, who is unable to confirm it, likewise anticipates a pause in attacks.
At long last, the Houthis have rescheduled a security webinar for shipping and marine enterprises, marking the first of its kind, to February 10 due to attendees' queries and recommendations.
The rescheduled event aims to ensure a more comprehensive and beneficial experience for all attendees.
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