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Global shipping giants Hapag-Lloyd and Maersk brushed off claims of a safe passage agreement for vessels with the Houthis, Bloomberg reports. Danish publication ShippingWatch published a report claiming that shipowners had met with the Houthis and reached an agreement, without naming the carriers involved. The report saw Maersk, Hapag Lloyd, and other shipping companies’ share prices fall in recent trading, the outlet said.
ON THE DEFENSE FRONT- Sri Lanka is gearing up to join the US-led naval coalition countering Houthi attacks in the Red Sea, the Washington Post reports. The decision led to criticisms from opposition leaders who cited economic troubles at home, while Sri Lanka’s defense minister has said that the deployment would incur no costs as the country already has vessels patrolling the Indian Ocean, the news outlet said.
Qatar is against military action targeting the Houthis: Qatar has decried Houthi-led attacks against shipping in the Red Sea, Doha News reported. The country’s “position is very clear on protecting the freedom of navigation,” Qatar’s Foreign Minister Mohammed bin Abdulrahman Al Thani said in a joint presser with US Secretary of State Antony Blinken in Doha, Qatar. However, when asked whether Qatar supported military action against the Houthis, Qatar’s top diplomat affirmed his country’s stance against such a step, “we never see a military action as a resolution,” he said.
ATTACKS CONTINUE- Early January saw two Israeli-linked carriers attacked in the Indian Ocean: The first vessel, Liberian-flagged Chem Cilicon, was struck northwest of the Maldives, and the second, Stern Company-owned Pacific Gold, was hit near India’s Cochin Port, IRNA reported, citing Lebanese media. Both vessels were hauling oil bound for Israel, the outlet said.
Houthis propose that vessels disavow links with Israel in exchange for safe passage: Any ship transiting the Red Sea while displaying the message “We have no affiliation with Israel” will not be attacked, Houthi leader Mohamed Al Houthi said.
Red Sea tanker traffic is still going strong: Oil and fuel tanker traffic in the Red Sea was stable in December, Reuters reports, citing ship tracking data. The Red Sea and Gulf of Aden saw an average of 76 oil and fuel tankers a day in December, just two vessels below November’s numbers, the newswire reports, citing data from ship tracker MariTrace. The unexpectedly high number comes contrary to predictions, “We haven’t really seen the interruption to tanker traffic that everyone was expecting,” shipping analyst at Lloyd’s List Michelle Wiese said.
MARKET REAX- Spot container shipping rates surge: Short-term container shipping rates between Asia, Europe, and the US have surged on the back of reduced capacity due to Red Sea disruptions, Bloomberg reported citing Freightos data. Spot rates for 40-foot containers shipped from Asia to Northern Europe have exceeded USD 4k, 173% higher than they were before vessel rerouting started to take form in December. Rates for Asia to Mediterranean shipments hit USD 5.175k, with some carriers announcing USD 6k rates for journeys in mid-January, the outlet said.
Asia-Morocco rates also spiked: Red Sea disruptions have seen Asia to Morocco shipping rates surge 60% to 100%, the North Africa Post reported. Rates for 20-foot containers shipped from Shanghai to Casablanca increased from USD 1.45k to USD 2.8k, the outlet said citing a statement by a shipping industry official.
REMEMBER- Red Sea disruptions have seen shipping volumes in the Suez Canal drop 28% y-o-y for the week ending Sunday.
