Maersk Resumes Shipping Through Suez Canal After Attacks
The shipping giant Maersk has announced that it will once again be directing its vessels through the Suez Canal, after avoiding the route for about a week due to attacks on shipping in the Red Sea. The attacks, carried out by the Iran-backed Houthi militia in Yemen, were in retaliation for Israel’s military actions against Hamas in Gaza. In response, a U.S.-led naval force has been assembled to defend vessels in the Red Sea, successfully preventing further attacks.
Shipping Advisory Shows Vessels Headed for Suez Canal
A shipping advisory released by Maersk on Wednesday revealed that several of its vessels were en route to the Suez Canal. This is significant as the canal handles approximately 12 percent of world trade. Maersk stated that they continue to prepare their vessels for passage through the Red Sea, with any deviation from this decision being evaluated on a case-by-case basis.
Disruption to Global Shipping
The attacks near the Suez Canal have caused significant disruption to global shipping. This comes at a time when fewer vessels can pass through the Panama Canal due to a drought, leading maritime companies to reroute their vessels around the Cape of Good Hope. As a result, shipping rates have increased and delays have been incurred, adding costs for companies.
Other Shipping Companies Still Avoiding Red Sea
While Maersk has resumed shipping through the Suez Canal, other shipping companies such as Hapag-Lloyd are still avoiding the Red Sea. MSC, a Switzerland-based shipping company, reported that one of its vessels was attacked but no injuries were reported. MSC stated that their priority is the safety of their seafarers and will continue to reroute vessels via the Cape of Good Hope until safety can be ensured.
Impact on Asia-to-Europe Trade
According to analysts at UBS, more than 400 cargo ships have been forced to take a 6,000-nautical-mile detour around Africa, reducing the capacity of Asia-to-Europe trade by 25 percent. This has resulted in additional costs for carriers, who have imposed container surcharges to cover the extra expenses.
Shipping tracking websites show that many ships are now traveling through the Red Sea, including oil tankers.
Overall, the resumption of shipping through the Suez Canal by Maersk is a positive development for global trade, although challenges remain for other shipping companies and the industry as a whole.
Brooks Barnes contributed reporting.