Amid further attacks and reroutings…we look at the true scale of the Houthi attacks on MidEast tankers.
Suez update: 46 container ships now have diverted around the Cape of Good Hope rather than transiting the Red Sea. pic.twitter.com/4zaTXn3LO1
— Ryan Petersen (@typesfast) December 18, 2023
We suspect the market is underestimating the impact that S&P Global’s Jennifer Gnana, Kelly Norways, and Mohammed Al-ansare detail below,
- Cape transport option adds 40% to voyage distance
- Houthis targeting tankers, container, cargo shipping
- Container rates rise to 2023 high
Major shipping companies paused transiting the Middle East’s critical Bab al-Mandeb chokepoint for seaborne trade Dec. 15 after repeated attacks by Yemen’s Houthi militants threatened to upend global trade flows.
Danish shipping giant A.P Moller-Maersk — which accounts for 15% of the global container freight market — suspended voyages passing through the Bab al-Mandeb until further notice. Hapag-Lloyd — which controls 7% of the container market — also paused traffic through the Red Sea until at least Dec. 18 after one of its ships was attacked by Houthis.
Hapag-Lloyd’s Liberia-flagged Al Jasrah containership caught fire in the Red Sea on Dec. 15 after being hit by a missile from Houthi rebels in Yemen. The attack came a day after the Houthis attacked the Maersk ship Gibraltar on Dec 14 in a near-miss by a cruise missile.