Maersk Quits Red Sea Shipping ‘Until Further Notice’
Maersk ordered its ships not to sail through the Red Sea after Houthi rebels attacked one of its ships there on Saturday.
Although Maersk and CMA CGM both were preparing to return their ships to the Red Sea after Christmas, the former paused shipping for a second time Sunday following the attacks.
More from Sourcing Journal
CMA CGM Says Red Sea Ship Unharmed After Militants Claim Attack
Outlook '24: Container Shipping at 'Bottom of the Classic Boom and Bust Cycle'
Maersk said in an advisory Tuesday that it will pause all transit through the Red Sea and the neighboring Gulf of Aden south of the Arabian Peninsula “until further notice.” On its website, Maersk still has 36 vessels listed as set to continue via the Suez Canal, while 106 will be diverted around Africa’s Cape of Good Hope. Another 24 ships still don’t have a new transit plan.
On Saturday, the Maersk Hangzhou was hit by an unknown object after it sailed through the Red Sea’s chokepoint, the Bab el-Mandeb Strait, en route from Singapore to Port Suez, Egypt.
The Hangzhou was among the first vessels to venture into the Red Sea after Operation Prosperity Guardian (OPG), the U.S.-led multinational maritime security operation initiated to protect ships from missile attacks from Yemen-based Houthi rebels, targeted the area.
After the initial attack, a second wave of four Houthi boats approached the Maersk Hangzhou and opened fire in an attempt to board the vessel. Maersk Hangzhou’s security team, along with U.S. helicopters deployed from a nearby Navy vessel, successfully thwarted the attempt with a counteroffensive that sank three of the ships and killed 10 militants.
All Maersk crew members were reported to be safe.
“An investigation into the incident is ongoing and we will continue to pause all cargo movement through the area while we further assess the constantly evolving situation,” Maersk wrote in a Tuesday update. “In cases where it makes most sense for our customers, vessels will be rerouted and continue their journey around the Cape of Good Hope.”
Hapag-Lloyd will continue diverting vessels away from the Suez Canal until Jan. 9, when it will reassess whether it will continue rerouting traffic around the cape, the company confirmed to Sourcing Journal.
CMA CGM would not comment on the Red Sea situation. The French ocean freight giant on Dec. 26 said that some vessels transited the Red Sea, adding that it planned to increase the number of ships making the trip. Since then, the company has reportedly been able to escort more ships through the area with the help of the French Navy, as part of OPG.
The Mediterranean Shipping Company (MSC)‘s MSC United VII vessel was attacked on Dec. 26, as it left the Red Sea from Saudi Arabia. The company has not lifted its suspension on Red Sea traffic.
Yemen’s Houthis have targeted commercial ships in the Red Sea in the wake of the Israel-Hamas war in Gaza, forcing major shipping companies to pay more to reroute around the Cape of Good Hope instead sailing the Suez Canal.
Roughly 20 percent of container shipments flow through the Red Sea, pressuring retailers that have goods coming through the gateway—particularly merchants in Europe.
Fallout from the Red Sea turmoil is already coming home to roost in the form of higher freight rates, and wait times ballooning to as much as 20 days, according to Project44 data. As of Friday, the supply chain visibility technology provider said 166 vessels had been rerouted, while 28 are staying put and waiting out the conflict.
Apparel sellers are likely to feel the pressure from the rising delays and costs. Clothing accounts for 39.3 percent of Suez route shipments to Europe, the Middle East and North Africa, according to S&P Global Market Intelligence data.
Although Operation Prosperity Guardian aims to help ships safely sail the Red Sea and the Suez Canal, new concerns mounted after Iran dispatched the Alborz warship to the Red Sea through the Bab el-Mandeb Strait. Iran, which many believe is funneling financial and military support to the Houthi rebels, reportedly launched the ship after the Western coalition staved off the assault on the Maersk Hangzhou.
The Red Sea hasn’t been the only problem area for Maersk. The company said that its Mayview Maersk container ship lost at least 40 containers that fell overboard during a storm in the North Sea. According to local reports, at least four containers washed ashore on the coast of Denmark, with a possible 42 still lost at sea.
