Half of container ships passing through the Red Sea and Suez Canal are now avoiding the route due to the Houthi threat, according to a report published today by Bloomberg News Agency.
According to the report by Flexport, 299 ships, carrying a combined 4.3 million containers, have changed their route or plan to do so. That's double last week's number and equivalent to 18% of the world's total cargo.
According to Flexport, diverting routes to bypass Africa extends navigation by 25%. The lengthening of journeys increases transportation costs, and as long as the trend continues, the lengthening may lead to an increase in the price of products.
Maersk containers in the port of Copenhagen (archive), photo: Reuters
On Sunday, Denmark's Maersk announced the resumption of operations in the region. According to the shipping giant's announcement, the reason for the resumption of operations is the multinational operation led by the United States to secure navigation in the area. "The security situation that has developed in the Red Sea and the Gulf of Eden has led Maersk and other companies to suspend services or adapt new routes," the company said in a statement. "Our utmost concern has always been and will always be the safety of our crews and your cargo on our ships, and all recent measures we have taken have taken into account."
The Bab el-Mandeb Strait passes through 12% of all the world's oil and 8% of liquefied gas. The Suez Canal, which is on the route, passes 12% of all world trade.
Wrong? We'll fix it! If you find a mistake in the article, please share with us