Off again on again Maersk is off again on Red Sea/Suez Canal transit, freight rates triple

 From the story:

Uncertainty remains despite a U.S.-led military effort to curb the attacks. Maersk had resumed the Suez route, but suspended it again in recent days after one of its ships was targeted by missiles and small boats.

Asia-Europe is Maersk’s biggest trade lane, and freight rates on the route have roughly tripled from their early December levels, the Goldman Sachs analysts said, while “the impact on annual contract rates is likely to be positive, albeit dependent on how the security situation evolves.”

Maersk’s other major routes are seeing “positive second-order effects from the Suez disruption.” Global trade is also being stymied by drought in the Panama Canal.

However, analysts do not currently foresee the same level of global supply chain disruption and capacity constraint as experienced during the Covid-19 pandemic, which triggered a huge spike in freight rates and record profits for companies including Maersk.

Danish shipper Maersk suspended Red Sea transit for 48 hours after late Saturday Houthi attack, U.S. Navy claims 1,200 safe transits in the last 10 days

 From the story here:

The events surrounding the Maersk Hangzhou represented the 23rd illegal attack by the Houthis on international shipping since Nov. 19, the Central Command said. It was the first time the U.S. Navy said its personnel had killed Houthi fighters since the Red Sea attacks started. ...

Since the Pentagon announced Operation Prosperity Guardian to counter the attacks just over 10 days ago, 1,200 merchant ships have traveled through the Red Sea region, and none had been hit by drone or missile strikes, Vice Adm. Brad Cooper told The Associated Press in an interview on Saturday.

Maersk reroutes container ships around Africa to avoid the Houthis in the Red Sea and Gulf of Aden

 

Maersk said that, after monitoring the situation since suspending the routes on Friday, it had decided all vessels currently on hold and previously scheduled to travel via the Red Sea would take the Cape of Good Hope.

The vessels will continue on diverted routes “as soon as operationally feasible,” the company added. As of Monday, Maersk said it had around 20 vessels stopped en route, around half of which are east of the Gulf of Aden. The remainder are located south of the Suez Canal in the Red Sea, or north of it in the Mediterranean Sea.

More.

BP suspends Red Sea transit while Biden & Co. dither

 “In light of the deteriorating security situation for shipping in the Red Sea, bp has decided to temporarily pause all transits through the Red Sea,” it said. “We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region.”

 

Shipping giants MSC, Hapag-Lloyd , CMA,  CGM, and Maersk  have also all announced suspensions of travel through the Red Sea due to the drone threat, meaning no access to the key link between Europe and Asia between the Middle East and North Africa.

 

Violence resumed on Monday in the Red Sea, with the U.K. Maritime Trade Organization saying it was alerted that a vessel nearly 30 miles out from Yemen’s port of Mokha “experienced an explosion on its port side.”

More.

World's largest shipping carrier MSC abandons Red Sea/Suez Canal travel, will divert vessels around Africa after Friday attacks by Iran-backed Houthi Rebels of Yemen, Biden administration dithers and jibbers

 MSC, the world’s largest shipping carrier, joins shipping giants Hapag-Lloyd and Maersk in Red Sea travel pause amid attacks :

 

 

 

MSC, the world’s largest shipping carrier, said it is no longer traveling through the Suez Canal after its container ship, the MSC PALATIUM III, was attacked Friday while transiting the Red Sea under a subcharter to Messina Line.  ...

In response to Friday’s attacks, in which three vessels were attacked, the World Shipping Council said it is deeply alarmed and concerned about the escalating crisis, and that it’s calling for decisive action to protect seafarers.

“The right of freedom of navigation stands as a fundamental right under international law, and must be safeguarded,” the council said. “The time for resolute international engagement is now.”

The U.S. government has been in discussions with countries of the 39-member Combined Maritime Forces to form a maritime task force to “ensure safe passage” of ships in the Red Sea.

U.S. Central Command, which oversees America’s military interests in the Middle East, has told CNBC discussions are ongoing.

This is a stain on the free nations of the world, which continue to tolerate Iran-backed Houthi attacks on ships in the Red Sea

Intercepting missiles is not enough.

Maersk to pause all container ship traffic through the Red Sea 

"we have instructed all Maersk vessels in the area bound to pass through the Bab al-Mandab Strait to pause their journey until further notice”