Several container ships are anchored in the Red Sea, some of which have disabled their tracking systems in response to attacks by Yemeni Houthi rebels on the vital East-West trade route through the Suez Canal. The attacks have raised concerns about possible disruptions to global trade, leading US-led international forces to begin patrolling waters near Yemen, on Tuesday, the 19th of December, reports Reuters.
The Red Sea is connected to the Mediterranean by the Suez Canal, the shortest shipping route between Europe and Asia. About 12% of the world’s shipping uses this route.
Major cargo carriers including Hapag Lloyd, MSC and Maersk, oil major BP and oil tanker group Frontline have announced that they
will avoid the Red Sea route and reroute via the Cape of Good Hope.
Many container ships in the Red Sea have disabled their tracking systems and have armed guards on board, and at least 11 container ships are anchored in the Red Sea. Four MSC container ships have disabled transponders since the 17th of December. Some vessels are hiding their location off the Yemeni coast as a precautionary measure, by pinging on other locations.
Maersk has temporarily suspended all container traffic through the Red Sea following a ” near-mishap ” involving a Maersk Gibraltar vessel, reports Reuters. Maersk said on Tuesday that the company had rerouted the ships.
Houthi attacks on merchant ships in the Red Sea are raising concerns
about the impact on global trade, with sources saying the impact will depend on how long the crisis lasts, but insurance and longer routes will be an immediate burden.
Supply disruptions in the Red Sea are not expected to have a significant impact on crude and LNG prices, but overall, slightly longer delivery times and freight costs are forecast, while the impact of rerouting on business is likely to be minimal, writes Reuters.
Also read: Yemeni Houthis launch a missile at Norwegian tanker Strinda
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