In response to increased assaults by Houthi militants in Yemen, two prominent freight companies, including MSC, the world’s largest container shipping line, announced their decision to avoid the Suez Canal.
The Houthi attacks target commercial vessels in the Red Sea, disrupting crucial East-West trade routes, particularly for oil shipments, which traditionally utilize the Suez Canal to save time and costs for circumnavigating Africa.
The escalating attacks have led to a rise in war risk insurance premiums.
Vessels Under Attack: MSC Palatium III and Hapag Lloyd’s Al Jasrah:
The Liberian-flagged MSC Palatium III fell victim to a drone attack in the Bab Al Mandab Strait off Yemen’s southern Red Sea end.
Although no injuries were reported, the vessel sustained fire damage and was taken out of service.
Another incident involved the Liberian-flagged vessel Al Jasrah from Hapag Lloyd, which was hit by a missile, as confirmed by the US military.
Industry Response: Maersk, MSC, and CMA CGM Halt Shipments:
Denmark’s AP Moller-Maersk temporarily halted all container shipments through Bab Al Mandab on Friday; a decision echoed on Saturday by Swiss-based MSC and French shipping group CMA CGM.
CMA CGM expressed growing safety concerns as the situation in the region continues to deteriorate, with the possibility of German container line Hapag Lloyd following suit.
Escalating Conflict and Global Response:
As Houthi attacks intensify, with recent incidents targeting shipping and reaching as far as Israel, global responses are underway.
US Central Command reported the interception of 14 Houthi-launched drones in the Red Sea, emphasizing no damage to ships. Britain also confirmed its warship intercepted a suspected attack drone targeting merchant shipping.
Diplomatic Efforts and Houthi Talks:
Amid the turmoil, Houthi spokespersons announced engagements in talks mediated by Oman with unspecified “international parties.”
This development raises hopes of a potential de-escalation, suggesting a willingness on the part of the Houthis to negotiate and address concerns over their operations in the Red Sea and Arabian Sea.
Economic Impact on Global Shipping Routes:
Bab Al Mandab, a critical route for global seaborne commodity shipments, faces disruptions affecting the transport of crude oil and fuel from the Gulf to the Mediterranean and Asia.
The surge in war risk premiums adds substantial extra costs for voyages through the Red Sea, leading companies like MSC to reroute services around the Cape of Good Hope and extending sailing times for vessels initially scheduled to transit the Suez Canal.
UAE Launches Updated Labour Accommodation System to Enhance Worker Wellbeing
Dubai Taxi Expands Fleet with 94 New Vehicles, Market Share Set to Increase
India Unveils Crew for Historic Gaganyaan Space Mission
UAE Introduces Dh10,000 Fine for Late Corporate Tax Registration
New Visa Screening Center Opens in Abu Dhabi’s Al Shamkha District
IHC Introduces AI to Boardroom, Transforming Decision-Making Process
“Unleashing Extraordinary Ambitions: Rigul Kalra’s Journey of Entrepreneurial Brilliance”
Rihanna’s Fenty x Puma Makes a Comeback with New Sneaker
Anya Taylor-Joy and Malcolm McRae Tie the Knot in Romantic Venice Wedding
American firm to buy Everton Football Club
Celebrities Embrace Pantless Trend at New York Fashion Week
Alexander McQueen Names Seán McGirr as Creative Director
- Fashion2 days ago
“Transforming Faces, Empowering Souls: The Makeup Journey of Abeeha Mamoon”
- Travel & Hospitality3 days ago
5-Year Multiple-Entry Visa: A Boon for UAE Residents and Tourists
- Real Estate2 days ago
Unlock Affordable Homeownership in Dubai: Explore Pocket-Friendly Deals with 1% Down Payment Options
- UAE News3 days ago
Dubai Launches Dh112 Million Creek Restoration Project
- UAE News2 days ago
UAE Allocates $10 Million Grant to Support World Trade Organisation Initiatives
- Business Insights2 days ago
Qatar Airways Group Launches ‘Our Habitas Ras Abrouq’ Resort on Qatar’s West Coast
- Human Interest1 day ago
Badshah Lights Up Dubai’s Untold Music Festival with Vibrant Performance
- Legal2 days ago
Ras Al Khaimah Tightens Traffic Laws, Introduces Stricter Penalties from March 1