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Factbox-Shipping firms react to Houthi attacks in the Red Sea

Published 01/12/2024, 08:01 AM
Updated 01/12/2024, 08:06 AM
© Reuters. FILE PHOTO: Containers are seen stacked up on the container ship CMA CGM Benjamin Franklin at the port of Antwerp, Belgium September 23, 2022. REUTERS/Yves Herman/File Photo

(Reuters) -Iranian-backed Houthi militants in Yemen have stepped up attacks on vessels in the Red Sea, impacting a shipping route vital to East-West trade.

In response, some shipping companies have instructed vessels to instead sail around southern Africa, a slower and therefore more expensive route.

The U.S. and Britain launched dozens of air strikes against Houthi military targets overnight on Jan. 11 and 12 in retaliation for the attacks, widening regional conflict stemming from Israel's war in Gaza.

Below are actions taken by companies (in alphabetical order):

C.H. ROBINSON

The global logistics group said on Dec. 22 it had rerouted more than 25 vessels around the Cape of Good Hope over the past week, and that number would likely grow.

"Blank sailings and rate increases are expected to continue across many trades into Q1 of 2024," it added.

CMA CGM

The French shipping firm said on Jan. 5 it had not changed its plans announced last month to gradually raise the number of vessels transiting through the Suez Canal.

It had previously rerouted several vessels via the Cape of Good Hope.

EURONAV

The Belgian oil tanker firm said on Dec. 18 it would avoid the Red Sea until further notice.

EVERGREEN

The Taiwanese container shipping line said on Dec. 18 its vessels on regional services to Red Sea ports would sail to safe waters nearby and wait for further notification, while ships scheduled to pass through the Red Sea would be rerouted around Africa. It also temporarily stopped accepting Israeli cargo.

FRONTLINE

The Norway-based oil tanker group on Dec. 18 said its vessels would avoid the Red Sea and the Gulf of Aden.

GRAM CAR CARRIERS

The Norwegian company, which specialises in transporting vehicles, said on Dec. 21 its vessels were restricted from passing through the Red Sea.

HAPAG-LLOYD

The German container shipping line on Jan. 9 said it would continue to divert its vessels away from the Suez Canal and around the Cape of Good Hope. It will take next decisions on Jan. 15.

A Hapag-Lloyd spokesperson said on Jan. 12 it welcomed measures to secure safe passage for cargo vessels, as diversions have led to tens of millions of euros in additional monthly costs.

"We are not commenting on the specific incidents that occurred last night," the spokesperson said regarding the U.S-British air strikes.

HMM

The South Korean container shipper said on Dec. 19 it had ordered its ships which would normally use the Suez Canal to reroute around Africa.

HOEGH AUTOLINERS

The Norwegian shipping company said on Dec. 20 it would stop sailing via the Red Sea after the Norwegian Maritime Authority raised its alert for the southern part of the sea to the highest level.

KLAVENESS COMBINATION CARRIERS

The Norway-based fleet operator said on Dec. 28 it was unlikely to sail any of its vessels in the Red Sea unless the situation improves.

MAERSK

The Danish shipping group, which controls about one-sixth of global container trade, said on Jan. 5 it would suspend Red Sea traffic "for the foreseeable future".

Houthi attackers had sought to board one of its container vessels on Dec. 31.

Following the U.S.-British strikes against Houthi military targets, Maersk said on Jan. 12 it hopes international interventions and a larger naval presence in the area will eventually lead to a resumption of maritime commerce through the strait.

MSC

Mediterranean Shipping Company (MSC) said on Dec. 16 its ships would not transit through the Suez Canal, with some already rerouted via the Cape of Good Hope, a day after two ballistic missiles were fired at one of its vessels.

OCEAN NETWORK EXPRESS

Ocean Network Express (ONE), a joint venture between Japan's Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines and Nippon Yusen, said on Dec. 19 it would reroute vessels from the Red Sea to the Cape of Good Hope or temporarily pause journeys and move to safe areas.

OOCL

The Hong Kong-headquartered container group said on Dec. 21 it had instructed its vessels to either divert their route away from the Red Sea or suspend sailing. The company, owned by Orient Overseas (International) Ltd, also stopped accepting cargo to and from Israel until further notice.

WALLENIUS WILHELMSEN

The Norwegian shipping group said on Dec. 19 it would halt Red Sea transits until further notice. Rerouting vessels around Africa will add 1-2 weeks to voyage durations, it said.

© Reuters. FILE PHOTO: Containers are seen stacked up on the container ship CMA CGM Benjamin Franklin at the port of Antwerp, Belgium September 23, 2022. REUTERS/Yves Herman/File Photo

YANG MING MARINE TRANSPORT

The Taiwanese container shipping company said on Dec. 18 it would divert ships sailing through the Red Sea and the Gulf of Aden via the Cape of Good Hope for the next two weeks.

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