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Free AccessMaersk Pauses Red Sea Shipping; Iran Sends Warship To Area
Danish shipping giant Maersk have issued a statement confirming that following the attacks on the Maersk Hangzhou over the weekend, the firm will continue to pause all cargo movement through the Red Sea/Gulf of Aden "while we further assess the constantly evolving situation." States that in cases where it makes most sense for customers, vessels will be re-routed around the Cape of Good Hope.
- The pause comes amid the continued escalation in tensions in the region. While Houthi rebels have disrupted shipping for months with aerial and seaborne attacks launched from Yemen, the decision by Iranian forces to send anaval frigateto the area risks confrontation given the expanded presence of forces from the US and its allies.
- The Houthis have claimed that they are attacking ships owned by Israeli individuals or firms, but the attack on a Maersk vessel comes days after Denmark announced its intention to join the US-led coalition combating Houthi actions in the Red Sea.
- Given the crucial link of the Suez Canal for shipping, a sustained diversion via Africa's southern tip will continue to increase costs worldwide.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.