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British energy giant Shell has suspended its shipments via the Red Sea indefinitely, as recent US-led strikes against the Houthi stoked tensions in the region, Reuters writes, citing Wall Street Journal reporting. The oil major paused crossings last week, citing a concern that an attack could trigger an oil spill and endanger crew.
Tankers are shunning the Red Sea en masse: Six additional oil tankers were observed turning away from the Red Sea on Monday, bringing to 15 the total number of tankers to avoid the region in the aftermath of the US-led strikes, Reuters reported separately earlier this week. Tanker vessel owners Torm, Hafnia, and Stena Bulk had announced that they would avoid the Bab El Mandeb Strait this Friday, with Euronav keeping in place a temporary halt, the newswire said.
Japan’s “Big Three” carriers officially pull out of Red Sea: Following Nippon Yusen instructing its vessels on the way to the region to pause on Tuesday, Japanese shipping giants Mitsui OSK Lines and Kawasaki Kisen Kaisha joined Yusen in confirming that they were suspending Red Sea transits, the NHK World reports.
Russian state owned tanker group Sovcomflot is also considering alternative routes for its fleet as it monitors developments in the Red Sea, the company’s press told TASS on Tuesday. “It is currently impossible to predict whether the company will continue to work there permanently,” the company said.
Iran is denying claims that it is helping the Houthis orchestrate their attacks against international shipping in the Red Sea, Iran’s foreign minister Amir-Abdollahian told CNBC on Tuesday at the World Economic Forum in Davos. The Houthis are acting on their own accord and “are not receiving any orders or instructions from us,” Iran’s top diplomat said. “Maritime security is of paramount importance to us, because we export oil,” he added, explaining that threats to shipping in the region run counter to Iran’s interests.
The EU could launch its own naval mission by next month: The EU’s Political and Security Committee bloc has given its initial backing for the move, which would be coordinated with allies, Reuters reports, citing statements by European diplomats on Tuesday. The mission is set to kick off by 19 February but could see its timeline fast tracked, diplomats said. This comes in parallel to the US-led naval coalition — dubbed Operation Prosperity Guardian — which has failed to gather European support due to their reluctance to operate under US command, the newswire said.
The UK has set out a new strategy to help businesses navigate supply chain disruptions,The Financial Times reports. The strategy outlines methods of government intervention to help industries retain access to critical products, including medicines, minerals, semiconductors, as geopolitical tensions wreak havoc on trade routes. A new critical imports council will help businesses zero-in on risks to sensitive imports and put together workarounds. Another government program will also work to remove import barriers and help companies find new supplies. Nevertheless, the onus of responsibility for managing supply chains remains with industry, UK Business Minister Nusrat Ghani is cited as saying.
