A number of major shipping companies have suspended operations in the Red Sea amid security concerns after a series of attacks on ships by Houthi militants from Yemen.
In recent weeks, the Houthi group has attacked and seized several ships in the Red Sea and the Bab el-Mandeb Strait in response to the war between Israel and the Palestinian militant group Hamas in the Gaza Strip.
Houthis described the attacks as a show of support for the Palestinians and pledged to continue them until Israel stops its military campaign on the Gaza Strip.
Taking to X, on Monday, December 18, the Houthi spokesman Abdul-Salam wrote, “We reiterate that the shipping lanes in the Red Sea and the Arabian Sea are safe and there is no danger to the ships of any country except for ships belonging to the enemy entity or those heading to its ports, in connection with its brutal aggression and unjust siege of the Gaza Strip.”
“We have assured everyone that Yemen’s operations are to support the Palestinian people in the Gaza Strip, and that we cannot stand idly by in the face of the aggression and siege that the Strip is being subjected to, as there is no food, no medicine, and even drinking water, which the enemy entity has cut off,” he wrote on X.
“Any real steps that respond to the humanitarian situation in Palestine and Gaza by bringing in food and medicine would contribute to reducing the escalation,” he added.
The attacks pose a significant threat to ships transporting cargo and energy between Europe and Asia, from the Suez Canal to the Indian Ocean.
Shipping giants that suspended Red Sea route
- Copenhagen-based Maersk
- German container line Hapag Lloyd
- Italian-Swiss company Mediterranean Shipping Company (MSC)
- French shipping group CMA CGM
- Taiwanese container shipping line Evergreen
- Oil major BP, Norwegian oil and gas company Equinor
- Belgian oil tanker company Euronav
- South Korean container shipper HMM
- Hong Kong-based Orient Overseas Container Line (OOCL)
The STATISTA website reports that over half of the global overseas container shipping market is dominated by these companies.
On Monday, the United States (US) announced the establishment of a new international mission to counter attacks on commercial vessels in the Red Sea.
“The recent escalation in reckless Houthi attacks originating from Yemen threatens the free flow of commerce, endangers innocent mariners and violates international law,” US Defence Secretary Lloyd Austin said in a statement.
“This is an international challenge that demands collective action.”
Operation Prosperity Guardian is a global security initiative involving 10 nations, including the US, UK, Bahrain, and Seychelles.
On Friday, December 15, the International Chamber of Shipping deemed the Houthi attack on shipping lanes as a significant threat to international trade, urging naval forces to intervene, Reuters reported.
The Red Sea is crucial for East-West trade, particularly oil, via the Suez Canal, minimizing time and costs associated with sailing around Africa.
The decision to use alternative long routes negatively impacts companies and their products as it increases fuel costs due to the long travel distance.
Disrupted shipping movement is expected to impact raw material products, production components, vehicles, spare parts, electrical products, clothing, and shoe products.
Israel-Hamas war
War erupted in the Gaza Strip after Hamas’s October 7 surprise attack that killed 1,200 people and captured 240 hostages, fueled by thousands of rockets fired at Israeli towns and cities.
In response, Israel committed to eliminate Hamas and launched a massive offensive to eliminate the militant group and governance capabilities.
The Hamas-run Gaza health ministry has reported over 19,400 Palestinians dead in the ongoing offensive, causing international criticism for its increasing death toll.
