Home World Middle East Red Sea attacks: Here’s how shipping firms have reacted Several major shipping companies have had to react to challenges being faced in the Red Sea by Reuters February 4, 2024 Houthi militants in Yemen have stepped up attacks on vessels in the Red Sea, impacting a shipping route vital to east-west trade. In response, some shipping companies have instructed vessels to instead sail around southern Africa, a longer and therefore more expensive route. READ MORE: Red Sea tensions to drive ocean freight shipping rates up by 243% Source: Reuters Below are actions taken by companies (in alphabetical order): C.H. Robinson The global logistics group said on December 22 it had rerouted more than 25 vessels around Africa over the previous week, and that number was likely to grow. “Blank sailings and rate increases are expected to continue across many trades into Q1 of 2024,” it said. CMA CGM On February 2, the French shipping group suspended until further notice all crossings by its vessels of the Bab al-Mandab Strait in and out of the Red Sea. It had previously said it would reroute a weekly service between Europe and Australia to avoid attacks, and that it expected months of disruption. Euronav The Belgian oil tanker firm said on December 18 it would avoid the Red Sea until further notice. Evergreen The Taiwanese container shipping line said on December 18 its vessels on regional services to Red Sea ports would sail to safe waters nearby, while ships scheduled to pass through the Red Sea would be rerouted around Africa. It also temporarily stopped accepting Israeli cargo. Frontline The Norway-based oil tanker group on December 18 said its vessels would avoid the Red Sea and the Gulf of Aden. Gram Car Carriers The Norwegian auto carrier said on December 21 its vessels were restricted from passing through the Red Sea. Hafnia The Norwegian shipping firm said on January 12 it has halted all ships heading towards or within the Bab al-Mandab Strait. Hapag-Lloyd The German container shipping line said on January 22 it will continue to route its vessels around Africa until further notice. The company also said it is introducing land corridors from Jebel Ali, Dammam and Jubail to its ocean shuttle service out of Jeddah to mitigate the impact on its business. CEO Rolf Habben Jansen warned on January 31 the attacks on cargo vessels in the Red Sea are unlikely to cease soon, adding that a political deal and a mission to protect freight vessels might bring a resolution within six months. The company swung to a wider-than-expected fourth-quarter operating loss due to lower transport volumes following the attacks on ships in the Red Sea. HMM The South Korean container shipper said on Dec. 19 it had ordered its ships which would normally use the Suez Canal to reroute around Africa. Hoegh Autoliners The Norwegian auto carrier said on December 20 it would stop sailing via the Red Sea. Klaveness Combination Carriers The Norway-based fleet operator said on January 16 it would not trade any of its vessels through the Red Sea until the situation improves. Kuehne + Nagel “Even if from today forward the Bab al-Mandab Strait was to become safe and secure for transit, we expect it will take a minimum of two months before vessels could assume normal rotational patterns,” Michael Aldwell, executive VP for sea logistics at the Swiss logistics firm, said on January 12. Maersk The Danish shipping group on January 5 suspended Red Sea traffic “for the foreseeable future.” On January 18, Maersk said the Red Sea disruptions and winter weather were causing congestion at container terminals, urging customers to pick up their units as soon as possible. It also started offering customers the option to shift some cargo from vessels to air freight at ports in Oman and the UAE. A day earlier, its CEO said the Red Sea-related disruption to global shipping would likely last at least a few months. On January 16, Maersk sent two container ships through the Red Sea carrying goods for the U.S. military and government. On January 25 it suspended Red Sea transits by vessels of Maersk Line, Limited (MLL), its U.S. subsidiary carrying cargo for U.S. government agencies. MSC Mediterranean Shipping Company (MSC) said on December 16 its ships would not transit through the Suez Canal. Nippon Yusen Japan’s biggest shipper by sales suspended navigation through the Red Sea for all vessels it operates, a spokesperson told Reuters on January 16. It has also instructed vessels near the Red Sea to wait in safe waters and is considering route change. Ocean Network Express Ocean Network Express, a joint venture between Japan’s Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines, and Nippon Yusen, said on December 19 it would reroute vessels from the Red Sea to the Cape of Good Hope or temporarily pause journeys and move to safe areas. OOCL The Hong Kong-headquartered container group said on December 21 it had instructed its vessels to either divert their route away from the Red Sea or suspend sailing. It also stopped accepting cargo to and from Israel until further notice. Tailwind Shipping Lines Lidl unit, which transports non-food goods for the discount supermarket chain and goods for third-party customers, said it was sailing around Africa for now. Torm The Danish oil tanker group said on January 12 it had decided to pause all transits through the southern Red Sea for now. Wallenius Wilhelmsen The Norwegian shipping group said on December 19 it would halt Red Sea transits until further notice. Yang Ming Marine Transport The Taiwanese container shipping company said on December 18 it would divert ships sailing through the Red Sea and the Gulf of Aden via the Cape of Good Hope for the next two weeks. Source: Reuters