Maersk’s Decision on Red Sea Sailings: Rerouting or Risk?

The Danish shipping company Maersk is set to make a decision on whether to send its ships back through the Suez Canal over the Red Sea or reroute them around Africa following an attack on one of its vessels by Yemen-based Houthi fighters. The company suspended all Red Sea sailings for 48 hours and has more than 30 container ships heading through the Suez, with 17 voyages put on hold. A decision on how to proceed will be made on Tuesday. The attack on the Maersk Hangzhou, which was repelled by US military helicopters, has prompted concerns about the safety of the Red Sea route for international shipping.

The Houthi attacks on international ships began in November to support the Palestinian group Hamas in its war with Israel, prompting major shipping companies like Maersk and Hapag-Lloyd to stop using Red Sea routes and instead take the longer journey around southern Africa. Maersk had initially announced it would resume use of the Red Sea after a US-led military operation was deployed to protect ships, but the recent attack has once again raised concerns.

Rerouting ships around the southern tip of Africa is expected to cost up to $1 million in additional fuel on each round-trip between Asia and northern Europe. Maersk’s decision on how to proceed with its Red Sea sailings will have significant implications for the global container shipping industry.

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