BHP reroutes bulk shipments around Africa after Red Sea attacks

Australian mining company BHP Group has reported disruptions in the Red Sea, leading some of its cargo service providers to take alternative routes such as Africa’s Cape of Good Hope. The company stated that the majority of its shipments do not come through this route, and there have been no major business disruptions so far. However, other companies, including oil giants BP and Shell, have cut off transit through the Red Sea due to attacks on merchant ships by Iran-aligned Houthis.

These disruptions have led to some shipping companies rerouting their ships via the slower and more expensive Cape of Good Hope. BHP’s maritime iron ore chief, Gerard Ang, mentioned at an industry conference that these disruptions could result in a tightening of tonnage supply in the North Atlantic market and a more volatile dry bulk shipping market in the short term. However, he also stated that in the long term, the company does not see much profound impact on trade.

BHP Group generates revenue of $1.96 billion in Europe, which accounts for about 3.6% of its total revenue of $53.82 billion. The mining group operates in several countries and mainly produces copper, iron ore, and metallurgical coal. Despite the disruptions in the Red Sea, the company does not anticipate significant long-term impacts on trade.

Source .