Shipping Companies Raise Concerns Over Deteriorating Security in the Red Sea

Major shipping companies are raising concerns about the deteriorating security situation in the Red Sea, despite efforts to contain attacks by Houthi rebels in Yemen. The heads of AP Moller-Maersk A/S and D/S Norden A/S expressed their worries, with Japanese shipping giant Mitsui OSK Lines Ltd. warning that disruptions in the area could last up to a year. The region has seen a decrease in merchant fleet traffic since the Houthi attacks began in November, and the situation became even more volatile after US and UK airstrikes in the region last month.

The risk perception of shipping companies is crucial in determining when ships will return to the region, with all owners stating their intention to divert their vessels until it is safe. Despite defense forces operating in the Red Sea to thwart attacks on commercial vessels, the Houthis have continued their assaults, and there has been an increase in Somali piracy. The shipping companies stressed the need for a period of stability and decreased attacks before considering a return to the area.

Maersk and MOL have announced that they will continue to divert their ships for several weeks or even months, and Norden does not expect a solution to be imminent. Additionally, the dry weather has led to low water levels in the Panama Canal, resulting in a large number of ship diversions. The situation has been described as unprecedented by the CEO of Norden.

Source .