Shipping firms to avoid Suez Canal as Red Sea attacks increase

Two main freight companies together with MSC, the world’s largest container delivery line, on Saturday (Dec 16) stated they might keep away from the Suez Canal as Houthi militants in Yemen stepped up their assaults on commercial vessels in the Red Sea.

Yemen’s Iranian-backed Houthi motion has been attacking vessels in response to the Gaza war on a route that permits East-West commerce, particularly of oil, to make use of the Suez Canal to save lots of the time and expense of circumnavigating Africa. Struggle threat insurance coverage premiums have risen because of this.

The Liberian-flagged MSC Palatium III was attacked on Friday with a drone within the Bab al-Mandab Strait off Yemen, on the southern finish of the Purple Sea, based on the Houthis.

No accidents have been reported, however the vessel suffered some hearth harm and was taken out of service, MSC stated in a press release. One other Liberian-flagged vessel, Hapag Lloyd’s Al Jasrah, was hit by a missile, the US army stated.

Denmark’s A.P. Moller-Maersk on Friday paused all its container shipments by Bab al-Mandab till additional discover, and was joined on Saturday by the Swiss-based MSC and French delivery group CMA CGM.

“The state of affairs is additional deteriorating and concern for security is growing,” CMA CGM stated in a press release.

German container line Hapag Lloyd has stated it would do the identical.

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