Red Sea attacks disrupt container shipping
Major logistics service providers are suspending shipping journeys through the Red Sea after a series of missile attacks. Rebel groups in Yemen confirmed that they had fired missiles at container ships in the region.
A.P. Moller-Maersk said on December 15 that it was suspending all container shipments through the Red Sea until further notice. It confirmed that one of its vessels, the Maersk Gibraltar, had come under attack. It called the attacks alarming, and said they posed a significant threat to ships and crews.
Two other carriers, CMA CGM and Hapag Lloyd, quickly confirmed that they were also suspending services in the region. Hapag Lloyd said one of its ships, Al Jasrah, came under attack on December 15 and that it was re-routing its ships around the Cape of Good Hope.
Commentators have said diversions around the Cape of Good Hope can add 33% to journey times, resulting in additional costs.
A recent edition of the Leatherbiz Market Intelligence newsletter, published on December 12, warned that attacks on ships in this part of the world would interrupt supply chains because container ships pass through the Red Sea with great frequency, going to and from the Suez Canal.
It said this would affect the movement of products between Europe and Asia, ,with shoes among the products caught up in the disruption.
Image: Hapag Lloyd.
