Since the outbreak of war between Israel and the terrorist group Hamas on 7 October, the Houthis – also known as Ansar Allah – have stepped up drone and rocket attacks on Israeli ships in the Red Sea.
Geopolitical tensions in the region are having irreversible consequences, threatening to shut down a vital trade route for Israeli imports and exports between the Far East and Europe.
Several shipping companies, including the Mediterranean Shipping Company (MSC), Hapag Lloyd, CMA CGM and MAERSK, which previously used the Red Sea and the Suez Canal in Egypt, have already announced that they will change the routes of their vessels on the Europe to Asia routes, threatening not only Israel’s international trade but also global trade.
For this reason, the new routes announced include the crossing of the Cape of Good Hope in South Africa. This significantly increases transit times (+40%).
What Happened?
On 11 December, two merchant ships – the MSC Clara and the Norwegian Swan Atlantic – were attacked by drones in the Red Sea. Houthi military spokesman Yahya Sarea claimed the attacks were due to the ships’ crews not responding to calls.
Combined with the current Blank Sailings and the proximity of the Chinese New Year… the new structural changes may cause:
• Impact on global and Israeli international trade: Ships will no longer be able to dock in Israel or sail to nearby ports, Cyprus or Greece (where goods are later picked up by smaller ships to reach their final destination).
• Supply chain disruption;
• Significant increases in ocean freight (and surcharges);
• Longer delivery times (between two and four weeks);
• Exceeding goods’ expiry dates;
• Higher costs for consumers.
How to overcome it?
• Rerouting trade using longer routes;
• Realising load forecasts with greater anticipation and coordination;
• Higher levels of inventory due to uncertainty.
Sources:
FleetMon. (2023). MSC container ship hit by missile, turned back. Consultado a 20 de dezembro de 2023, em: https://www.fleetmon.com/maritime-news/2023/43973/msc-container-ship-hit-missile-turned-back/
Reuters. (2023). Vessel attacked in Red Sea off Yemen coast, US blames Houthis. Consultado a 20 de dezembro de 2023, em: https://www.reuters.com/world/middle-east/ukmto-ambrey-report-possible-explosion-south-yemens-port-mokha-2023-12-18/
Exame. (2023). BP e outras empresas suspendem tráfego no Canal de Suez após ataques de rebeldes do Iêmen. Consultado a 20 de dezembro de 2023, em: https://exame.com/mundo/bp-e-outras-empresas-suspendem-trafego-no-canal-de-suez-apos-ataques-de-rebeldes-do-iemen/
