(Reuters) – Germany’s Hapag-Lloyd and Hong Kong’s OOCL said on Thursday they would avoid the Red Sea, the latest shipping companies to do so after attacks on ships by Yemen’s Houthi group disrupted global trade. Due to which Naval Task Force has been established.
Hapag-Lloyd said it would divert 25 ships from key waterways by the end of the year as the disruption has sent freight rates and shipping stocks soaring. Avoiding the Red Sea and the Suez Canal means taking a longer route around Africa.
The Iran-aligned Houthis, who control much of Yemen, have for weeks been attacking ships passing through the Bab al-Mandab strait at the southern end of the Red Sea, which they say is a threat to Israel’s war in Gaza. There is a reaction.
Meanwhile, traders are struggling to find other options, including alternative shipping routes or air flights, to deliver consumer goods to retailers, adding about an extra 10 days to travel time around Africa.
“Up to this moment, we have directed OOCL-operated vessels to either divert or suspend sailing in the Red Sea,” container group OOCL told Reuters in a statement on Thursday. For the first time it had confirmed stopping sailing.
“We will continue to assess the feasibility of various options and take appropriate measures according to different circumstances,” OOCL said.
Analysts have said the delays could leave some stores low on stock by February, although more companies have sought flexibility in supply chains by buying from exporters in different regions following the COVID-19 pandemic.
