Red Sea Attacks on Container Vessels: Shipping Companies Reroute Away From Suez Canal
Shipping giants like MSC, CMA CGM, A.P. Moller-Maersk, and Hapag-Lloyd have stopped their vessels from entering the southern Red Sea due to recent attacks on their container ships. Maersk reports an attack on Thursday, December 14, 2023 and another attack on Friday, December 15, 2023. The Suez Canal being no longer an option, shipping companies instead navigate around the Cape of Good Hope adding costs and delays to global trade.
The heightened security concerns are linked to Iran-backed Houthi rebels targeting commercial ships in response to the Israel-Hamas conflict. Companies like Israel-owned ZIM have rerouted ships, and some, including OOCL and COSCO, have stopped accepting Israeli cargo. The Red Sea waterway facilitates 12% of global trade. The International Chamber of Shipping has called for influential nations to intervene and prevent further drone and missile attacks in the Red Sea. Several nations are now contributing to the international security initiative, Operation Prosperity Guardian, which aims to secure container vessels from strikes in this region.
If you have questions about whether your shipment will be affected, please contact the Canaan Group sales team.