Joining this precautionary measure, Japan's leading shipping companies, Mitsui O.S.K. Lines (9104.T) and Nippon Yusen (9101.T), have disclosed that their vessels linked to Israel are steering clear of the Red Sea area. Both entities asserted ongoing vigilance and monitoring of the evolving situation.
The maritime industry heavyweights, including Hapag-Lloyd and Denmark's Maersk (MAERSKb.CO), opted to abandon Red Sea routes and the Suez Canal earlier this month due to the Houthi militant group's targeting of vessels, causing disruptions in global trade.
These companies have rerouted their ships around Africa via the Cape of Good Hope to thwart potential attacks. In doing so, they impose additional charges on customers, while also extending the transportation time from Asia to Europe and the East Coast of North America by days or even weeks.
The outlook remains uncertain, with Maersk considering a shift in strategy. A Reuters breakdown of the group's schedule on Thursday indicated a plan to navigate almost all container vessels between Asia and Europe through the Suez Canal, diverting only a handful around Africa.
France's CMA CGM has also announced an increase in the number of vessels traversing the Suez Canal, contrasting with its peers' redirection strategy. However, several container lines, including CMA CGM, have introduced surcharges due to the vessel rerouting, contributing to the escalating costs of sea transport since the initiation of Houthi targeting.
In a notable incident, Mediterranean Shipping Co's container ship, United VIII, faced an attack while transiting the Red Sea, as reported on Tuesday. The Houthis, on the same day, claimed responsibility for firing missiles at the vessel, although no confirmation of a direct hit was provided.
The Suez Canal, a vital passageway utilized by approximately one-third of global container ship cargo, is witnessing a substantial financial impact. Rerouting ships around the southern tip of Africa is anticipated to incur up to an additional $1 million in fuel costs for each round trip between Asia and Northern Europe.
