Increasing Number of Shipping Companies Cease Operations on Red Sea Routes due to Houthi Assaults

The Mediterranean Shipping Company (MSC), the world's largest shipping group, has decided to redirect its ships away from the Red Sea due to an increased risk of attacks. This decision follows similar actions taken by French company CMA CGM, Danish shipping giant Maersk, and German transport company Hapag-Lloyd. The threat of attacks stems from Iran-backed Houthi rebels in Yemen, who have targeted ships traveling to Israel. The Houthis have expressed support for Hamas after Israel's military campaign in Gaza, which resulted in the deaths of 1,200 people and the capture of 240 individuals. In response to the escalating attacks, MSC reported that one of its container ships was attacked on Friday and had to be taken out of service. As a result, their ships will now be rerouted via the Cape of Good Hope, located at the southernmost tip of Africa. CMA CGM has also instructed its container ships to seek safe areas and pause their journeys in secure waters until further notice. Maersk, the world's second-largest shipping firm, has described the situation as alarming and has instructed its vessels in the area to halt their journeys until further notice. The Bab al-Mandab Strait, a 20-mile-wide channel between Yemen and Djibouti and Eritrea on the African coast, is known as the Gate of Tears and is considered dangerous to navigate. It serves as a pathway for ships to reach the Suez Canal, a critical shipping route. A significant number of vessels pass through this strait, accounting for approximately 10% of global trade each year. Avoiding this route will force ships to take longer and more time-consuming routes, such as traveling around the southern coast of Africa.