The Houthi movement in Yemen has intensified its attacks on ships in the Red Sea to demonstrate support for Hamas, which is fighting Israel in the Gaza Strip. These attacks target a route that facilitates trade between the East and West, especially oil trade, passing through the Suez Canal to save time and costs instead of circumnavigating the African continent. The attacks have prompted some shipping companies to change their vessels' routes to avoid the area. A statement released today indicated that the marine insurance market in London has expanded the area it considers high-risk in the Red Sea amid escalating attacks on commercial ships. Osama Rabie, head of the Suez Canal Authority in Egypt, announced that the authority is closely monitoring the current tensions in the Red Sea and assessing their impact on navigation through the canal, given that some shipping companies have announced a temporary diversion of their routes to the Cape of Good Hope. Below are the key companies that are considering or have decided to temporarily suspend shipping through the Red Sea:
**CMA CGM**
The French shipping group CMA CGM announced on December 16 that it has temporarily halted all container shipments through the Red Sea following attacks on commercial ships in the region.
**Hapag-Lloyd**
The German container shipping company Hapag-Lloyd stated it is considering whether to stop sailing through the Red Sea after reports of one of its ships being attacked. A projectile believed to be from a drone struck its vessel Al Jassra while it was sailing near the Yemeni coast; fortunately, no crew members were injured.
**Maersk**
The Danish company A.P. Moller-Maersk announced on December 15 that it will stop all container shipments through the Red Sea until further notice following a "near-miss incident" involving its ship Maersk Gibraltar the previous day. The company reported that the vessel was targeted by a missile while traveling from Salalah in Oman to Jeddah in Saudi Arabia. Additionally, the company stated that extra charges will be applied to goods imported from Israel for bookings with a pricing date starting January 8, 2024.
**Orient Overseas Container Line**
The Orient Overseas Container Line has suspended the acceptance of goods to and from Israel until further notice due to operational issues, as stated by the Hong Kong-based shipping company on December 16.
**British Petroleum**
British Petroleum announced that it has temporarily suspended all transport operations in the Red Sea following attacks by Houthi forces, which control most of Yemen. The company emphasized that the safety and security of its employees and those working on its behalf are a priority.
**Evergreen**
The Taiwanese container shipping company Evergreen stated that it has decided to temporarily cease accepting Israeli goods with immediate effect and has instructed its container ships to suspend navigation through the Red Sea until further notice. Evergreen added that vessels in regional services to Red Sea ports would navigate to nearby safe waters and wait for further notice, while container ships scheduled to transit through the Red Sea will be redirected around the Cape of Good Hope to continue their journeys.
**Frontline**
Norwegian oil tanker group Frontline reported that its vessels will avoid passage through the Red Sea and the Gulf of Aden in the coming period.
**Shipping Movement**
Approximately 15 percent of global shipping traffic passes through the Suez Canal, which is the shortest navigable route between Europe and Asia. Albert Jan Swart, an analyst at ABN Amro, stated that the companies that have rerouted their ships collectively control "about half of the global container shipping market." He added that "avoiding the Red Sea will lead to increased costs due to longer travel times."
