Maersk says to pause Red Sea route until further notice
Delays could bring further disruption to global supply chains
Spiraling attacks on merchant ships by Houthi militants off the coast of Yemen have prompted widespread trade disruption with some of the world’s biggest vessel owners evaluating whether it’s safe to send crews through the Red Sea. Two of the world’s largest container shipping lines said on Friday that they were pausing transits through the Red Sea after their vessels were attacked. Two oil tanker companies have now said they are insisting on a clause in charters that will allow them to send their ships around Africa if they deem the waters off Yemen unsafe, Blommberg reports.
The moves will increase pressure on the US and its allies to improve security along one of the world’s most important trade corridors to avoid undermining the global economic recovery. An international trade group called for more military support to end the attacks.
Houthi militants have been attacking more and more merchant ships in the Red Sea — especially vessels that they claim are connected to Israel — in response to the war in Gaza.
A.P. Moller-Maersk A/S, the world’s second-largest owner of container ships, said in a statement on Friday that it has instructed its vessels heading for the southern entrance of the Red Sea to pause their voyages. Its vessel Maersk Gibraltar was attacked.
Shortly after Maersk’s announcement, Germany’s Hapag-Lloyd AG announced a halt until Monday, “then will decide for the period after.”
“Following the near-miss incident involving Maersk Gibraltar yesterday and yet another attack on a container vessel today, we have instructed all Maersk vessels in the area bound to pass through the Bab al-Mandab Strait to pause their journey until further notice,” Maersk said.
Bab al-Mandab is a narrow stretch of water that links the Indian Ocean to the Red Sea. Any ship using the Suez Canal as a shortcut between Asia and Europe must go through it it.
Maersk said its No. 1 priority was the safety of its crews, highlighting the challenge of balancing its customers’ needs against the duty to look after the staff. Sailing the long way around Africa would add thousands of miles to trade routes, boost fuel bills and delay cargo deliveries.
Euronav NV, an owner of oil supertankers, said it was insisting that its vessels be granted an option in all charters to avoid the Red Sea. On Thursday, Maersk Tankers said the same thing after one of its vessels was attacked.
Economic Risks
While it’s unclear how long-lasting Maersk and Hapag-Lloyd’s pauses will ultimately be, such steps underscore how serious and potentially economically damaging the attacks could be. Maersk owns a fleet of over 300 ships. Hapag-Lloyd ranks eighth, according to data from Clarkson Research Services Ltd.
