More Energy Shipments to Avoid Suez Canal

Several companies shipping energy products have announced to pause shipments via the Red Sea, sparking fears for supply passing through the Suez Canal.

• BP announced to pause all shipments through the Red Sea on Monday. “In light of the deteriorating security situation for shipping in the Red Sea, BP has decided to temporarily pause all transits through the Red Sea,” the firm said.
• Equinor also announced to reroute its shipments away from the Red Sea on Monday. “We are following the situation closely and are in dialogue with owners of ships carrying goods on our behalf, and with other actors in the industry. We have chosen to reroute ships in the area”, the firm said.
• Trafigura told Bloomberg it is still monitoring the situation while Ineos said none of its ships are currently heading in the direction of the Red Sea as the firm’s vessels move ethane from the US to Europe and to China.
• Argusmedia reported on Monday three LNG carriers have diverted away from the Bab al-Mandab strait amid ongoing Houthi attacks.
• Several container shipping companies announced in previous days to avoid the Red Sea. South Korea’s instructed 16 container ships to re-route around the Cape of Good Hope from 15 December, while Evergreen Line suspended its Israel imports and export service due to rising security risk.
• Maersk said it has paused transit for around 20 vessels in the Red Sea and it will re-direct its vessels to sail south of Africa, according to emailed statement.
• Hapag Lloyd, CMA CGM, Zim, Yang Ming, Cosco, OOCL, ONR and Euronav on Monday also said its vessels will avoid the Red Sea Route according to Bloomberg.
• The US Defense Secretary has announced that a joint naval task force has been formed to safeguard commercial sea traffic through the Red Sea.