German shipping company Hapag-Lloyd announced on Thursday that it is the latest company intending to avoid the Red Sea following attacks on commercial vessels by the Yemeni Houthi group, which is disrupting global trade and prompting a maritime response involving several countries. Hapag-Lloyd clarified that it will reroute 25 ships by the end of the year to avoid sailing in the Red Sea, amid rising shipping costs and increasing shipping inventories due to the chaos. Avoiding the Red Sea and the Suez Canal means that ships will take a much longer route around the continent of Africa.
The Houthis, allied with Iran and controlling most of Yemen, have been attacking vessels crossing the Bab el-Mandeb Strait in the southern Red Sea for weeks, claiming these actions are a response to Israel's war in Gaza. Traders are simultaneously rushing to find alternative shipping routes to deliver goods to retail stores, with the use of the Cape of Good Hope adding nearly 10 extra days to travel time. Analysts say that shipment delays could lead to stock shortages in some stores by February.
The communications director at Finnish elevator manufacturer Kone stated that the company estimates some shipments may be delayed by two to three weeks, but it expects most orders to arrive on time.
On Thursday, Greece announced that it will send a frigate to the region to protect navigation as part of a multinational alliance announced by the United States to ensure the safe passage of vessels through the Red Sea. Greek shipowners control about 20 percent of the world's commercial vessels by cargo capacity. However, several countries that the United States indicated would join the alliance have suggested that a large naval force is not expected to be sent to the area, and Saudi Arabia's name was not mentioned among the participants.
The Houthi leader threatened to escalate attacks to include U.S. naval ships, raising expectations of an expansion of the conflict around the Bab el-Mandeb Strait. A spokesperson for Hapag-Lloyd stated that the vessel Al-Jasra was attacked near Yemen while en route to Singapore, and the company will make further decisions regarding routes by the end of the year. The spokesperson noted that the company has not yet received detailed information about the maritime coalition the U.S. is trying to form to protect navigation in the Red Sea.
