Major Ship Carriers Suspend Their Red Sea Traffic

The crisis in the Middle East is expanding, affecting maritime transport, the most important hub of which is the Suez Canal in the Red Sea.

But the problem is not in Suez, on Egyptian territory, but further south, in the Gulf of Aden and along the Bab-el-Mandeb Strait between Yemen, Somalia, and Djibouti, or at the mouth of the Red Sea. Attacks by Yemen’s Houthi group have increased in the area in recent weeks. A potentially dangerous new front in the Middle East conflict and a real risk for international cargo transport, the geography of which is already difficult due to ongoing transit restrictions in the Panama Canal on the other side of the world due to drought.

As a result, the two largest shipping companies, MSC and Maersk, said they would temporarily avoid the Red Sea and therefore the Suez Canal as the attacks intensify. This route is essential for transporting hydrocarbons and liquefied gas from the Persian Gulf to Europe, but the route is also important for the transport of many other goods between Asia and Europe, with an estimated 30% of cargo shipped in containers by sea.

In addition to MSC and Maersk, the French CMA CGM also decided to suspend this route: “The situation continues to deteriorate, and security concerns are growing,” a company manager told Reuters, as did Germany’s Hapag Lloyd. The alternative route around Africa involves longer journeys of 10 to 15 days and therefore higher costs. Insurance costs have also increased: they even tripled before December 13, when the latest attacks had not yet occurred.

The Houthis, in solidarity with Hamas, have repeatedly stated their intention to obstruct vessels associated with Israel. The first action took place in November: the seizure of the Japanese vessel Galaxy Leader, owned by Ray Shipping company, whose owners include Israeli financier Rami Ungar. However, over the past week, attacks using drones and missiles have become more frequent, even targeting ships that formally have nothing to do with Israel. The Gulf of Aden has also seen a case of piracy in the past few hours, with the Bulgarian ship Mv Ruen being subject to an attempted attack, which was then prevented thanks to the on-site intervention of the Indian Navy. There is a strong US Navy presence in the area, and the goal is to create a force that can protect maritime traffic. This fact may contribute to increased tension in the region.