KOLKATA:Since Houthi militias oil price rise in Yemen said in October that they would strike ships headed toward Israel or cargo ships flying the Israeli flag, shipping in the Red Sea has become dangerous. According to the rebels, these steps are being done to support Hamas’ campaign against Israel and to demonstrate sympathy with Palestinians who have been caught up in the confrontation between Israel and Hamas. This may also be a strategy to put pressure on Israel to end its siege of Gaza while drawing attention to the Houthis of Yemen and giving them legitimacy. Following multiple attacks by the Houthis on container ships, the US, UK, and several other allies launched Operation Prosperity Guardian, during which the US and UK conducted airstrikes on Thursday to prevent the Houthis from assaulting ships that are carrying cargo. More strikes were performed on Friday targeting their weapons and drone stockpiles and their radar systems. However, shipping businesses who transport commodities on one of the busiest commerce routes in the world have not been reassured by these steps.
More than 17,000 ships pass through the Suez Canal each year, making it the fastest sea route between Asia and Europe. One trillion dollars’ worth of products, or 12% of all world trade, pass across the Red Sea every year, accordin
WHAT ARE YOUR OPTIONS AND HOW WILL SHIPPING COMPANIES AFFECT YOU? If shipping corporations are willing to take the chance of being attacked by the Houthi militia, they can transport their ships across the Red Sea. One such example is the Maersk Hangzhou, a container vessel flying the Singaporean flag and owned and controlled by Denmark that was traveling from Singapore to Port Suez in Egypt.g to Lloyd’s List and the BBC. There was struck by a missile while transiting the bab el-mandeb strait.
This forced Maersk to suspend passage througha key red sea strait “until further notice”.
andemic could occur again.Mediterranean Shipping major(MSC), Torm, Hapag-Lloyd and the oil major BP are among the ones who are diverting vessels away from the Red Sea. According to Marco Forgione, director general of the Institute of Export and International Trade, these attacks show that “supply chains are being weaponized.” He also told the New York Times that while the issues in the Red Sea may not have resulted in supply chains stumbling like they did during the pandemic, they do suggest that a situation akin to the one that occurred during the p
According to a BBC article, in November and December, Houthi attacks on ships passing through the Red Sea surged by 500%. As a result, big shipping corporations such as Maersk were obliged to cease commerce on specific lanes and use alternative routes, resulting in insurance rates that are 10 times more than normal. This implies that these ships could need to cruise an additional 4,000 miles around Africa and use a lot of fuel in order to avoid Houthis. Businesses dislike their alternatives, and analysts predict that consumers, who might ultimately be forced to foot the bill for the dispute as a result of higher product prices, won’t either.
Shipment companies take precautions against hijacking.
The logistics technology company Flexiport informed the New York Times that 389 container ships—or more than 5% of all boats worldwide—had already departed from the Suez and that several more were doing the same.These choices may suit shipping giants but ships traveling to or arriving from ports from countries bordering the Red Sea or vessels carrying 5,000 or less cargo or vessels who have a restricted budget may not be able to take the lengthier route, forcing them to face the Houthis.
Five ships navigating the Red Sea are reportedly utilizing their signals to indicate that they have connections to China in an attempt to fend off Houthi strikes, according to a Bloomberg story. The report went on to say that every ship has “all Chinese crew” listed in the destination box. Normally, they would have simply indicated where they were going with a signal. According to the source, two are in the Red Sea right now, two have successfully navigated the treacherous waterway on their way to Asia, and a fifth one looks to be moving in the direction of the Gulf of Aden.
Rear-Admiral Emmanuel Slaars, the joint commander of French forces, was cited in a different Reuters story that claimed French forces are escorting ships carrying French interests in the Red Sea region area.
According to the Houthis, they won’t give up assaulting ships that are sailing toward Israel. Even though one of their spokespeople claimed that international shipping is safe, it is unlikely that shipping companies will wager on the Red Sea passage given that the Houthis hijacked the Galaxy Leader car carrier in November and abducted five crew members, mostly Filipinos, who have not yet been released.
Citing the United Kingdom Maritime Trade Operations (UKMTO), a different report by Sky News claimed that two suspicious small boats had followed a merchant vessel on Saturday in an area 80 nautical miles southeast of Aden in Yemen. Although no damage was recorded, the UKMTO said it received a report of a missile fired against a vessel in a nearby location.