Attacks on ships in the Red Sea/Gulf of Aden have occurred since mid-November, creating security risks that may cause service interruptions.
Houthi forces in Yemen have attacked multiple ships in the Red Sea. With the threat and frequency of attacks increasing and, as a result, many ships diverting from the Suez Canal, the international maritime community is mobilizing to restore security although, for now, the number of attacks continues increasing.
As a consequence, all shipping companies have anticipated interruptions in service and are already changing this route to avoid the area, diverting ships to the Cape of Good Hope in South Africa.
Longer delivery times and higher freight rates.
The direct consequence on these routes is their impact with longer delivery times and higher freight rates, since alternative routes are longer and increase operational costs.
However, thanks to these other routes and the excess capacity available, operations should develop reasonably well and international transport should not be affected in a reasonable continuity. Furthermore, international mobilization to prevent attacks should result in the current problem being solved in the short term.
The importance of the Suez Canal
The Suez Canal is the shortest route for maritime traffic from Asia to the Mediterranean and Europe, as well as other destinations. The detour around the southern tip of Africa adds 7 to 10 travel days for ships sailing to northern Europe or North America. The longer navigation time is added to higher costs of fuel, personnel, CO2 emissions,…
The Suez Canal is an essential route in the global shipping landscape, with between 50 and 60 ships transiting each day, approximately 19,000 per year, including 30% of global container traffic and more than one million barrels of crude oil. per day.
