Global shipping corporations are abandoning the Red Sea after Iranian-backed Houthi terrorists in Yemen increased attacks on vessels in the Gulf region to show their support for the Palestinian Islamist group Hamas, which is fighting Israel in Gaza.
Maersk is diverting all container ships from Red Sea routes around Africa’s Cape of Good Hope for the foreseeable future, advising clients to expect considerable disruption, while Hapag Lloyd reported a large rise in diverting ship fees.
The trip round Africa can add about 10 days to journey times and requires more fuel and crew-time, jacking up shipping costs.
Denmark’s Maersk (MAERSKb.CO) had said earlier this week it would pause all vessels bound for the Red Sea following an attack on one of its ships by Houthi militants, and has since begun redirecting ships around Africa.
Maersk released a statement on Friday saying, “The situation is constantly evolving and remains highly volatile, and all available intelligence at hand confirms that the security risk continues to be at a significantly elevated level.”
The report will heighten fears of a prolonged disruption in the delivery and supply of products ranging from apparel to automobiles, despite the fact that the United States initiated a global effort to protect Red Sea commerce on December 19.
