International shipping companies continue to avoid sailing through the Red Sea due to fears of increased tensions involving Houthi rebels in Yemen. Shipping giant Hapag-Lloyd announced that they will continue to avoid the Red Sea and divert their ships to the Cape of Good Hope route in southern Africa, citing security concerns. A spokesperson for the company stated, “We believe the situation remains serious and we are reassessing the matter on a daily basis and will make a decision on Monday, January 15.”
This announcement comes after reports that China’s state-owned shipping company, China Ocean Shipping Group, had stopped sailings to Israeli ports, attributing the move to rising tensions in the Bab el-Mandeb Strait and the Red Sea. COSCO’s decision is noteworthy as it is partnered with Israeli shipping company Zim Integrated Shipping Co., causing costs to escalate. Israel’s Ministry of Transport is attempting to clarify COSCO Group’s decision to halt shipments to Israel.
Numerous other shipping companies have implemented similar measures. CH Robinson, CMA CGM, Euronav, Evergreen, Frontline, Gram Car Carriers, Han Xin Shipping, Leno Shipping, Klavenes Combination Carriers, Maersk, Mediterranean Shipping Company, Ocean Network Shipping, and OOCL have all rerouted ships to sail around the Cape of Good Hope, a slower and more costly route than the Suez Canal.
Many of these companies have also temporarily ceased accepting Israeli cargo, and some, like Wilhelmsen Group, have stopped all flights in the Red Sea until further notice. Overall, international shipping lines continue to avoid the Red Sea amid fears of Houthi threats and escalating tensions, opting for alternative routes to ensure the safety of their shipments.