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Maersk pauses Red Sea sailing for 48 hours:Maersk put a 48-hour hold on all transits through the Red Sea and Gulf of Aden that is set to expire today, according to a Wednesday statement. The decision came on the heels of a double attack against a Maersk vessel, dubbed Maersk Hangzhou, Reuters reported. The vessel was hit by a Houthi missile on Saturday while transiting the Bab Al Mandab strait and was later attacked by Houthi boats.
The US intervenes: Following a distress call, US Navy helicopters assisted security personnel aboard the Maersk Hangzhou in repelling the Houthi attack. In the ensuing naval battle, three Houthi vessels were sunk and 10 militants were killed while crew aboard the Maersk vessel suffered no casualties, the newswire said.
Maersk announced plans last week to resume shipping operations in the Red Sea, under the auspices of the US-led naval coalition, Operation Prosperity Guardian. The US kicked off the multinational naval coalition to ward off Houthi-led attacks against shipping in the Red Sea late last month
CMA CGM had also saidthat it would ramp up transits via the Red Sea and now seems to be following a mixed approach, rerouting vessels through the Cape of Good Hope but also allowing shipments to Red Sea ports subject to a surcharge, according to a recent advisory.
German shipping giant Hapag-Lloyd will continue to reroute its vessels away from the Red Sea, citing security reasons, with a situation reassessment due today, Reuters reports. Japan’s two largest carriers — Mitsui OSK Lines and Nippon Yusen — have been rerouting vessels with ties to Israel away from the Red Sea, with both companies saying that they are monitoring developments, the newswire said.
Tankers are also diverting: At least four tankers transporting diesel and jet fuel from the Middle East and India to Europe have opted to avoid the Red Sea, diverting around the Cape of Good Hope, Reuters reported, citing ship tracking data. The diverted vessels include a vessel chartered by Sinopec that had loaded at Bahrain, a vessel chartered by Kuwait Petroleum Corporation (KPC) carrying cargo loaded at Kuwait, an Aramco-chartered vessel that was loaded at KSA, and a Reliance Industries-chartered vessel that had loaded at India, Kpler data showed.
REMEMBER- Oil major BP had announced mid-last month that it would halt transits across the Red Sea, with a number of energy carriers joining the move.
Houthi-led attacks are not letting up: The US military’s Central Command had announced that it had downed 12 drones, three ballistic missiles, and two cruise missiles fired by Houthi forces in the Red Sea last week, CNBC reported on Wednesday. There were no casualties reported in the exchange, the Pentagon reportedly said.
But the US is hard pressed to find partners: Despite a Pentagon claim that 20 nations had signed up for the US-led naval coalition, almost half of the countries named have yet to acknowledge their contributions, Reuters wrote. Close US allies such as Spain and Italy have issued statements distancing themselves from the effort while KSA and the UAE have stated that they have no interest in joining the force, the newswire wrote. Countries are concerned that joining the US-led naval coalition could be understood as support for Israel, amid rising global anger towards the humanitarian crisis in Gaza, the newswire cited analysts as saying.
Denmark plans to send a frigate to the US-led force: Denmark intends to send a frigate to participate in Operation Prosperity Guardian, Reuters reported, citing statements by Danish Defence Minister Troels Lund Poulsen. Pending the Danish parliament’s approval, the frigate will join the US-led naval coalition by the end of January, the newswire said.
Talks of a US-UK “final warning” to the Houthis: The US and the UK are drawing up plans for airstrikes against Houthi targets in response to their attacks on shipping in what would represent a major escalation in the crisis, the Telegraph reported. Such a move will be preceded by a joint statement giving the Houthis a final warning to cease their attacks, the Telegraph said.
Also winding up the tension: The Iranian navy has dispatched a ship to the region, with the Alborz destroyer transiting the Bab El Mandeb strait to enter the Red Sea yesterday, Mehr reports. The move is likely a show of solidarity to Iran’s Houthi allies and is set to escalate tensions further.
Jordan forms committee to monitor developments related to Red Sea passage: The Jordanian Chamber of Commerce and Jordan’s Transport Ministry have agreed to form a joint committee to follow up on developments pertaining to disruptions to ship transits in the Red Sea, particularly those bound for the Jordanian port of Aqaba, Petra reported. The committee comprises public and private stakeholders and looks to coordinate efforts to overcome hindrances to shipping in a manner that is similar to what was done during the pandemic, Petra said.
Drought at the Panama Canal is piling up further strain on global supply chains: A backup of vessels at the Panama Canal is forcing grain shipments from the US that are bound for Asia to detour via the Suez Canal or the Cape of Good Hope, lengthening travel times and ramping up costs, Hellenic Shipping News reported. Rerouting via the Suez Canal entails an added 18-day journey while rounding the Cape of Good Hope means an additional 22 days, but rerouting options are further complicated by the turmoil in the Red Sea. “Declining water levels in the Panama Canal and Middle East tensions represent a double punch to grain shipment,” a source at Japanese shipping broker Exeno Yamamizu reportedly said.
