JEDDAH: Shipping container giant Maersk has diverted all its vessels from the Red Sea to the Cape of Good Hope in southern Africa in response to continuing attacks on maritime traffic by Houthi militia in Yemen.
The Danish company, which controls about a sixth of global container trade, stated that the diversion will remain in place “for the foreseeable future,” warning customers of “significant disruption to the global network.”
The decision comes after a Houthi attack on one of Maersk’s container vessels in the Red Sea on January 1, with attackers attempting to board the ship.
The security risk in the Red Sea remains highly elevated, prompting Maersk to take this precautionary measure. The company emphasized that the situation is constantly evolving, and the diversion is necessary to ensure the safety of its vessels and crew.
ALSO READ: UNSC to Hold Emergency Meeting on Houthi Attacks in Red Sea
The trip around Africa can add approximately 10 days to journey times, increasing fuel and crew-time requirements, leading to a significant rise in shipping costs.
The move raises concerns about prolonged disruptions to the worldwide delivery and supply chain of goods, affecting various industries from clothing to automotive. With the global shipping network experiencing challenges, customers are advised to anticipate delays and plan accordingly.
The Houthi attacks in the Red Sea have prompted a US-led multinational naval operation to safeguard commerce, with India also providing protective escorts to Indian container ships in the region. The escalation of regional tensions has contributed to a rebound in oil prices, with global benchmark Brent crude rising to $78.76 a barrel and US West Texas Intermediate reaching $73.82. Analysts highlight the oil price increase as a reminder of the risks associated with growing tension in the Middle East, impacting global energy markets.
