Shipping firms respond to Houthi attacks in Red Sea
Attacks on vessels in the Red Sea by Iran-aligned Houthi militants have disrupted a shipping route vital to east-west trade, with prolonged rerouting of shipments pushing freight rates higher and causing congestion in Asian and European ports, according to Reuters.
Below are actions taken by some shipping companies:
CMA CGM has suspended most Red Sea voyages but is still sending some cargoes on a case by case basis when French navy escorts are possible, Chairman and CEO Rodolphe Saade said on Feb. 29. The company expects disruptions to commercial shipping to last months.
DIANA SHIPPING's vessels are avoiding the Suez Canal. "Suez Canal transits are running about 40% below those seen during the first half of December last year. This is partially the result of several operators including ourselves avoiding the area," President Anastasios Margaronis said on Feb. 23.
The world's third-largest freight forwarder DSV said on July 24 that higher freight volume boosted earnings in the second quarter and that it expects a positive impact from disruptions in the Red Sea in the second half of the year.
The Belgian oil tanker firm EURONAV said on Dec. 18 it would avoid the Red Sea until further notice.
The Taiwanese container shipping line EVERGREEN said on Dec. 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.
The Norway-based oil tanker group FRONTLINE said on Dec. 18 that its vessels would avoid the Red Sea and the Gulf of Aden.
The Norwegian auto carrier GRAM CAR CARRIERS said on Dec. 21 its vessels were restricted from passing through the Red Sea.
The Norwegian shipping firm HAFNIA said on Jan. 12 it had halted all ships heading towards or within the Bab al-Mandab Strait.
The German container shipping line HAPAG-LLOYD, which in January decided to reroute its vessels around Africa until further notice, said on June 11 it did not expect the shipping industry to resume sailing in the Red Sea even if a ceasefire between Hamas and Israel was reached immediately. It said on March 14 that the Red Sea disruptions and global vessel oversupply would force it to cut expenses in 2024, including adapting sailings.
The South Korean container shipper HMM said on Dec. 19 it had ordered ships that would normally use the Suez Canal to reroute around Africa.
The Norwegian auto carrier HOEGH AUTOLINERS said on Dec. 20 it would stop sailing via the Red Sea.
The Norway-based fleet operator KLAVENESS COMBINATION CARRIERS said on Jan. 16 it would not trade any of its vessels through the Red Sea until the situation improves.
The Swiss logistics group KUEHNE + NAGEL said on March 1 it expected the impact from the Red Sea crisis to last into the coming quarters. The company said on July 23 the impact from the Red Sea crisis was "minimal", adding it was ready for higher second-half demand after increased use of its Sea-Air Logistics service.
The Danish shipping group MAERSK, which suspended Red Sea traffic on Jan. 5 "for the foreseeable future", said on July 17 it was experiencing a cascading impact from disruptions in the region, with congestions to its entire ocean network. On July 1, it forecast that the upcoming months would be challenging for carriers and businesses, as disruptions continue into the third quarter.
MSC Mediterranean Shipping Company (MSC) said on Dec. 16 its ships would not transit through the Suez Canal.
Japan's biggest shipper by sales NIPPON YUSEN suspended navigation through the Red Sea for all vessels it operates, a spokesperson told Reuters on Jan. 16.
OCEAN NETWORK EXPRESS, the joint venture between Japan's Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines and Nippon Yusen, said on Dec. 19 it would reroute vessels from the Red Sea to the Cape of Good Hope or temporarily pause journeys and move to safe areas.
The Hong Kong-headquartered container group OOCL said on Dec. 21 it had instructed its vessels to either divert away from the Red Sea or suspend sailing. It also stopped , opens new tab accepting cargo to and from Israel until further notice.
Star Bulk's CEO said on Feb. 13 that the Greece-headquartered company would halt sailings through the Red Sea after Houthis attacked two of its ships.
TAILWIND SHIPPING LINES, which transports non-food goods for the discount supermarket chain and goods for third-party customers, said in December it was sailing around Africa for now.
The Danish oil tanker group TORM said on Jan. 12 it had decided to pause all transits through the southern Red Sea for now.
The Norwegian shipping group WALLENIUS WILHELMSEN said on Dec. 19 it would halt Red Sea transits until further notice. The Taiwanese container shipping company YANG MING MARINE TRANSPORT said on Dec. 18 it would divert ships via the Cape of Good Hope for the next two weeks. It has given no further update.
