Japanese shipping companies change routes following Red Sea attacks

Attacks by the Houthis in Yemen are endangering passage through the Suez Canal, which connects the Mediterranean to the Red Sea and accounts for 12 percent of global trade.

According to a report by Japan's state broadcaster NHK, the companies "Nippon Yusen" and "Mitsui OSK Lines" have changed the routes of their cargo ships departing from and arriving in Europe.

It was reported that the route change was made "due to the possibility that the Houthis might target shipments linked to Israel" and that the ships are being diverted to the Cape of Good Hope in South Africa.

National media reported that Kawasaki Kisen Kaisha (K Line) and Ocean Network Express have also changed their shipping routes due to Houthi attacks.

The fact that the new routes will lead to delivery delays and increased transport costs is raising concerns that it could cause a "supply chain crisis" in the global economy.

News Source: AA