Spot Rate Slump Threatens to Sink Carrier Profits
Container spot freight rates on the main east-west deepsea trades witnessed more declines this week, as a combination of weak demand and excess supply of slot capacity prevailed.
By Andrew Gray
BRUSSELS, Jan 31 (Reuters) – EU member states want to launch a Red Sea naval mission by mid-February to protect ships from attacks by Yemen’s Iran-backed Houthi militia and could decide its command structure on Wednesday, foreign policy chief Josep Borrell said.
Many commercial shippers have diverted vessels following attacks by the Houthis, who control much of Yemen and say they are acting in solidarity with the Palestinians as Israel and Hamas wage war in Gaza.
“Not all member states will be willing to participate but no one will obstruct … I hope that on the 17th of this month (February) the mission can be launched,” Borrell told reporters ahead of a European Union defense ministers meeting.
He said the aim on Wednesday was to pick a lead nation, and outline where the mission would be headquartered, who would participate and with what assets.
The United States and other countries in December launched a mission to allay fears that disruption in one of the world’s top trading arteries could hit the global economy.
But some U.S. allies, notably European countries, have raised reservations about the plan, which has seen the U.S. and Britain launch air strikes on Houthi positions, and balked at the idea of being under Washington’s command.
Borrell said the EU operation would be named Aspides – meaning protector – and its mandate would be to protect commercial and intercept attacks, but not take part in strikes against the Houthis.
France, Greece and Italy have shown interest in leading the mission, with seven countries so far indicating they would be willing to send naval assets, diplomats said, adding that it would be based off existing EU missions in the region.
The operation would initially see three vessels under EU command. France and Italy already have warships in the region, and Germany plans to send the Hesse frigate to the area, diplomats said.
(Writing by John Irish;Editing by Andrew Cawthorne)
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