Maersk confirms no negotiation with Houthi fighters

Maersk A/S and Hapag-Lloyd have denied any agreement with Yemen’s Houthi rebels to facilitate safe ship movement through the Red Sea, after a report in Danish publication ShippingWatch caused shipping company shares to fall. The report suggested that meetings had taken place between rebels and shipowners, and some safe passage arrangements had already been reached, but did not name the companies involved.

Following the report, Maersk A/S closed down 5.7% in Copenhagen and Hapag-Lloyd was down 8.2% in Frankfurt. Other companies, including Kuehne & Nagel and Frontline, also saw declines. The potential safe passage pact would mean shorter sailing routes between Asia and Europe, causing increased ship supply and likely decreased freight rates. This is in contrast to recent predictions that rebel attacks in the region would result in higher rates as companies avoid the area.

The Houthi attacks on merchant ships have forced many to take the longer route around Africa instead of sailing through the Red Sea, resulting in increased transportation costs. ShippingWatch also reported that the pact would involve shipping companies agreeing not to sail to Israel in exchange for safe passage through the region.

Source .