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After the Houthis' attacks.. Global shipping companies suspend the passage of their tankers through the Red Sea, and others stop dealing with Israel

After the Houthis' attacks.. Global shipping companies suspend the passage of their tankers through the Red Sea, and others stop dealing with Israel

By Mounira Magdy

Published: December 18, 2023

Shipping giants "Maersk, MSC, French CMA, German Hapag-Lloyd, Belgian oil tankers Euronav, British Petroleum, Evergreen, Frontline" have stopped their tankers from passing through the Red Sea to take the Cape of Good Hope route, thus avoiding passing through the Suez Canal, amid Houthi attacks on ships passing through the area.

Maersk Danish Company

Maersk, one of the world's leading shipping companies, announced that it will officially apply additional emergency risk fees on all customer goods unloaded in "Israel" ports, also noting in its statement the application of additional fees on goods imported from "Israel" for bookings starting January 8, 2024.

This came after the company decided to stop the passage of its ships through the Red Sea region after one of them was targeted by Houthi attacks, changing its voyage route to take the Cape of Good Hope route.

German Hapag-Lloyd

In the same context, the German company Hapag-Lloyd, owner of the ships, announced the suspension of the passage of its container ships in the Red Sea after attacks targeted one of its vessels.

Belgian Euronav and Singaporean ONE

Belgian oil tanker company "Euronav" also decided to refrain from crossing the Red Sea until further notice due to attacks from Yemen, while the Singaporean shipping company ONE decided to stop working with "Israel," according to a statement reported by news agencies.

Oil tankers "Frontline" and "Evergreen" company

Furthermore, the oil tanker group "Frontline" said it is currently avoiding transit through the Red Sea area, followed by the Taiwanese shipping company "Evergreen," which decided to redirect its ships' route from the Red Sea and Gulf of Aden to the Cape of Good Hope for the next two weeks, while suspending its dealings with "Israel," according to its statement.

Bloomberg agency quoted its sources as saying that 46 container ships have rerouted from the Red Sea to the Cape of Good Hope route, while about 78 other vessels are awaiting instructions from their parent companies.

British Petroleum Company

British Petroleum has stopped all oil and gas shipments through the Red Sea due to increased attacks on cargo ships by Houthi militants in Yemen, including an attack on a Norwegian-owned ship.

Regarding this, Albert Jan Swart, an analyst at ABN AMRO Bank, told Reuters, "The companies that redirected the vessels collectively control about half of the global container shipping market," noting that avoiding transit through the Red Sea will lead to higher costs due to longer alternative travel times.

Suez Canal

Lieutenant General Osama Rabie, Chairman of the Suez Canal Authority, commented on the decision of some shipping companies to alter their tankers' courses due to maritime tensions in the Red Sea, saying in a phone interview on "Extra News" satellite channel, "Navigation through the Suez Canal has not been affected by the events taking place now in the Red Sea," adding that about 55 ships passed through the Cape of Good Hope from November 19 to December 17 out of 2,128 ships, representing 2% of the total ships that passed, clarifying that the canal's average passage is about 72 to 74 ships, with 77 ships passing yesterday, and 80 ships today.

With continued Houthi attacks on commercial vessels in the Red Sea waters, the U.S. Central Command announced that the Houthis launched two ballistic missiles towards the Bab al-Mandeb shipping lane, one of which hit a Liberian-flagged vessel, which broadcast a distress call stating that the ship was fighting a fire caused by a missile attack.

Houthi elements also threatened to attack another vessel heading north in the southern part of the Red Sea, and a drone launched from areas controlled by the Houthis attacked a ship heading south in the Red Sea.

A White House spokesperson said that commercial ship passage in the Red Sea has now become more dangerous due to Houthi attacks, adding that the United States will announce more details regarding the maritime task force in the coming days.

Additionally, "Ali al-Qahum," a member of the Political Bureau of the Ansar Allah movement affiliated with the Houthi group in Yemen, told Al Mayadeen channel late Friday that any hostile move against Yemen will have severe consequences and a high cost.

He added that "The Palestinian cause is the compass, and we will not abandon it no matter what, no matter the threats and American, Western, and Israeli warnings and hints," adding that operations against Israel will continue, according to Reuters.

He confirmed that Yemen is "present" with all defensive options in response to any hostile American, Israeli, or Western moves.

The leading shipping unions issued a warning that shipping companies must complete a comprehensive risk assessment when contracting armed guards and deploying them on ships sailing through the Red Sea and Gulf of Aden.

The warning stated that there must be a clear distinction between suspected attackers carrying small arms and military forces possessing more advanced weapons, adding that it is not advisable to engage with military forces as that may lead to significant escalation.

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