The Tightening Situation in The Red Sea Has Also Led To An Increase in Shipping Costs

Yemen armed militants attacked Red Sea ships, causing two shipping companies to suspend operations and causing a surge in freight rates on the European route.

Published by AleTape in China. 

After a series of attacks, Maersk and Hapag Lloyd took strict measures to suspend all navigation through the Red Sea until further notice. Maersk stated that all ships that will pass through the Strait of Mandate will be suspended until further notice. Hapag Lloyd stated that all container ships passing through the Red Sea will be suspended until the situation is reassessed.

On December 15th, the 15000TEU container ship Al Jasrah, owned by Hapag Lloyd, was attacked while sailing in the waters near Yemen. The tension near the Red Sea is intensifying, and German shipping company Hapag Lloyd confirmed that this large container ship caught fire after being hit by a missile attack. "We confirm that our 15000TEU container ship-'Al Jasrah', was attacked while sailing near Yemen. The ship is serving the route from the Asia to Mediterranean ocean area and no sailors were injured. Hapag Lloyd will take further measures to ensure the safety of their crew."

At the same time, the 2546TEU container ship MSC Palatium III (built in 2006) operated by Mediterranean Shipping (MSC) was hit, and the captain reported an explosion and fire on board before being extinguished. In addition, the 12199TEU container ship MSC Alanya (built in 2021) has been requested by the Hussai armed forces to change its course.

After the Yemen militants expressed their support for Palestine, the shipping risks in the Red Sea and the Strait of Manda intensified. From car ships, oil tankers, dry bulk carriers, and now a series of commercial ships, including container ships, have all been indiscriminately attacked by the Hussai armed forces.

Less than 24 hours before the attack, Maersk's ships were also attacked, but fortunately did not hit the ship. On the late night of December 13th, the 49500 ton of total weight Ardmore Encounter (built in 2014) under the Irish shipping company Ardmore was attacked while crossing the Red Sea, but no one was injured and the ship was not damaged. Previously, on December 11th, the Norwegian chemical ship "Strinda" was hit by a missile attack in the Red Sea, causing the ship to catch fire.

After successfully preventing Israeli ships from sailing in the Red Sea and Gulf of Aden, the Yemen Husai militants have made it clear that they will expand their attack targets to all ships heading to Israel, regardless of nationality. In addition, they have issued a warning to international shipping companies worldwide not to engage in any commercial dealings with Israeli ports.

Shippers should develop an emergency plan to deal with this rearrangement of routes, or at least consider how they will respond to such changes. This is not only related to the delay of goods, but also to the sudden significant increase in freight rates and capacity shortages, until the route network stabilizes.