Maersk reroutes ships around Cape of Good Hope due to escalating Houthi attacks

Maersk, the world’s second-largest shipping company, announced that it will continue to reroute its ships around the Cape of Good Hope due to escalating Houthi attacks in the Red Sea. The company cited safety concerns for its crews, ships, and cargo as the reason for the rerouting, resulting in longer journeys, increased costs, and disruptions in shipping operations. Maersk estimates a 15% to 20% capacity loss in key markets in the Far East, Northern Europe, and the Mediterranean.

The Houthi terrorist group has threatened to escalate attacks on shipping in response to Israeli military operations in the southern Gaza Strip. They vowed to impose sanctions on all ships and companies supplying Israeli ports, regardless of their nationality or destination. Recent Houthi attacks on ships in the Red Sea and the Indian Ocean have raised concerns about maritime security in the region, with the US Central Command confirming the downing of a Houthi-launched unmanned aerial system over the Red Sea.

Due to the increased risks posed by Houthi attacks, Maersk is implementing measures to increase reliability, such as increasing sailing speed and expanding capacity. However, rising costs, including fuel consumption and charter rates, have led to surcharges being passed on to shippers. Maersk recently raised its financial forecast for 2024 after experiencing stronger-than-expected demand, despite the challenges posed by the escalating Houthi attacks on shipping routes in the region.

Source .