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Maersk Closes Shipping Via Red Sea & Suez Canal After Attack On One of Its Ships
Maersk announced on Tuesday that it will reroute vessels around Cape of Good Hope (Africa) and permanently halt Red Sea transits. The choice was made in response to assaults on the container vessel Maersk Hangzhou, which was assaulted by four Houthi boats on Sunday and hit by a rebel rocket on Saturday.
The Houthis’ boats got within 70 feet of the Maersk Hangzhou cargo ship before American military helicopters intervened, sparking an exchange of gunfire between the armed guards and the attackers. Ten Houthi militants were killed when the helicopters destroyed three of the four boats following their firing on US Marines.
The U.S.-led coalition is discussing the possibility of conducting ground operations in Yemen as the Houthis have threatened to retaliate. Multiple explosions close to a commercial vessel were the subject of another incident that the U.K. Maritime Trade Organization recorded late on Tuesday.
Per The New York Times, the Pentagon has specific plans to attack Houthi drones and missile depots. Grant Shapps, the defence secretary for the United Kingdom, issued a warning on Monday in The Telegraph, saying that additional action to prevent threats to the Red Sea’s freedom of navigation won’t be held back. Spot costs for container shipping are rising along with some container shipping supplies due to increased military activity in the Red Sea.
The future is clearly apparent for cargo importers: increased freight expenses and extended delays. Although there is uncertainty, the sentiment regarding linear earnings remains favourable. Spot rates, including surcharges, are rapidly growing, but liner costs are also rising as a result of additional factors and significantly increased fuel consumption from longer trips. As a result of the ships’ diversions, quarterly liner cargo levels may suffer in the near future.
Before Tuesday’s statement, Maersk had 38 ships slated to cross the Red Sea on their way to Europe as well as the U.S. East Coast, plus an additional 25 ships with “to be determined” routes. It is now likely that these vessels will choose the lengthier route.
Reference: freightwaves
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