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FILE PHOTO: Container vessel Maersk Hangzhou sails in the Wielingen channel, Westerschelde, Netherlands, July 15, 2018. Rene van Quekelberghe/Handout via REUTERS/File Photo

FILE PHOTO: Container vessel Maersk Hangzhou sails in the Wielingen channel, Westerschelde, Netherlands, July 15, 2018. Rene van Quekelberghe/Handout via REUTERS/File Photo

Maersk Suspends Red Sea Voyages for ‘Foreseeable Future’

Mike Schuler
Total Views: 3448
January 5, 2024

Danish shipping giant Maersk announced Friday it will continue reroute its ships around the Cape of Good Hope for the “foreseeable future” as Houthi attacks on shipping continue unabated.

The decision comes after a missile attack and attempted boarding on the Maersk Hangzhou and “ongoing developments” in the area.

“The situation is constantly evolving and remains highly volatile, and all available intelligence at hand confirms that the security risk continues to be at a significantly elevated level. We have therefore decided that all Maersk vessels due to transit the Red Sea / Gulf of Aden will be diverted south around the Cape of Good Hope for the foreseeable future,” Maersk said in a statement on Friday.

The company acknowledged the disruptions that its decision will cause customers, but said it ultimately prioritizes the safety of vessels, seafarers and cargo in its decision-making.

“By suspending voyages through the Red Sea / Gulf of Aden, we hope to bring our customers more consistency and predictability despite the associated delays that come with the re-routing,” the company said.

Reroutings around the Cape of Hope results in longer travel times, increased freight rates, and disruptions to normal trade flows.

The announcement from Maersk comes on the heels of the December 30 missile attack on the M/V Maersk Hangzhou in the Southern Red Sea, followed by an attempted boarding, after Maersk had previously decided to resume transits through the region with the establishment of the U.S.-led naval coalition Operation Prosperity Guardian.

The attack led to Maersk initiating a 48-hour pause on Red Sea transits, which was followed Tuesday by Maersk’s announcement that it will continue reroutings around the Cape of Good Hope “until further notice.”

The decision from Maersk comes two days after a joint statement from the U.S., Denmark, the UK, and nine other countries warning the Houthis of consequences should they continue with the attacks. Within 24 hours of the joint statement, however, the Houthis sent an unmanned surface vessel (USV) laden with explosives into international shipping lanes. The USV eventually detonated near multiple ships, including both merchant and U.S. Navy ships, but ultimately no vessels were damaged.

The incident was the latest among 25 attacks since the November 19th hijacking of the Galaxy Leader, which remains in the hands of the Houthis.

On Thursday, the Pentagon said it would maintain a “defensive presence” in the region with regards to Operation Prosperity Guardian, but said that any military action outside of the defensive aspect will be “a completely different operation.”

As a result of the reroutings, Maersk has announced a “Transit Disruption Surcharge (TDS)” of $400 per 40-foot container, in addition to a peak season surcharge ranging from $600-$2000 per 40-foot container depending on the trade lane.

Shipping through the Red Sea accounts for approximately 15 percent of global trade, including 8 percent of global grain trade, 12 percent of seaborne oil and 8 percent of the global liquefied natural gas (LNG) trade.

According to the U.S. since launch of Operation Prosperity Guardian (OPG) in mid-December, approximately 1,500 merchant ships have safely transited the Red Sea. However, OPG forces have also destroyed 19 drones and missiles, including two cruise missiles and six anti-ship cruise missiles, as well as sunk three small boats launched by the Houthis.

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