Number of ships changing routes in the Red Sea is increasing

Houthi attacks are endangering passage through the Suez Canal, which connects the Mediterranean to the Red Sea, offers the shortest route between Europe and Asia, and handles approximately 12 percent of global trade.

While maritime authorities are issuing warnings against voyages in the region, shipping companies continue to release statements announcing that they have suspended operations or that their ships have changed routes.

170 SHIPS DIVERTED THEIR ROUTES TO THE SOUTH OF AFRICA

In a statement from the US shipping company C.H. Robinson, it was reported that more than 25 ships had been diverted from the Suez Canal to the Cape of Good Hope over the past week.

The statement said, "It is likely that this number will continue to increase due to the ongoing war risks in the Red Sea and the drought in the Panama Canal."

Furthermore, a statement from the US logistics company Flexport noted that as of December 20, firms had diverted 170 ships to the south of Africa and 35 ships had halted their voyages.

The statement conveyed that this situation is causing major delays in most current shipments, and that longer transit times are expected for routes between Asia and Europe, and between Asia and the US East Coast.

ADDITIONAL FEE IMPLEMENTATION

On the other hand, Germany's largest container shipping company, Hapag-Lloyd, announced that it would implement additional fees in the new year for shipments made with its vessels to and from the Middle East.

In the statement on the company's website, it was stated that a seasonal surcharge would be applied starting January 1 for voyages from Asia and Oceania to the Red Sea region.

The statement, which also indicated that special surcharges would be applied starting from the new year for shipments from the region covering Egypt, Jordan, Saudi Arabia, and Yemen to Asia and Oceania, noted that these fees would also be applied to the route between India, the Middle East, and North America starting January 22.

The statement mentioned that depending on the route and the size of the container, the additional fees would range between 250 and 1000 dollars per container.

Danish shipping company Maersk had previously announced additional shipping fees for containers, and the French company CMA CGM had announced a similar practice.

SUPPLY CHAIN CRISIS

Abdul-Malik al-Houthi, the leader of the Houthis in Yemen, had threatened in a television speech on November 14 that they could target Israeli ships in the Red Sea. Houthi military spokesperson Yahya Saree announced on his X social media account on November 19 that they would target any ship flying the Israeli flag in response to Israel's attacks on the blockaded Gaza Strip.

Subsequently, the Houthis carried out drone and missile attacks on two Israeli ships named "Unity Explorer" and "Number Nine" in the Bab el-Mandeb Strait.

CENTCOM announced on the X social media platform on December 4 that 4 attacks had been carried out on 3 commercial ships in international waters in the southern Red Sea.

Following the deterioration of the security situation in the region, the world's largest container company, the Italian-Swiss joint venture Mediterranean Shipping Company (MSC), Denmark-based shipping companies Maersk, German transport company Hapag-Lloyd, French shipping company CMA CGM, and British energy company bp suspended all their voyages in the Red Sea.

The attacks on commercial ships in the Red Sea and the decisions taken by companies one after another had increased concerns that a new "supply chain crisis" would begin in the global economy.

While the US administration announced on December 18 that a multinational mission had been established against the Houthis' increasing attacks on international ships in the Red Sea, it was also reported that the European Union (EU) was preparing to join the US initiative to ensure the safety of commercial ships in the Red Sea.