Shipping Firms Pause Red Sea Transport

It’s been strange that the attacks on US naval vessels and cargo ships has largely been ignored by media outlets.

Terrorist organizations have been attacking Naval vessels and shipping vessels, and now firms are suspending the Red Sea Route.

Recently, British Petroleum has been the latest firm to pause travel through the Suez Canal after several vessels have been attacked by Houthi militants.

On December 18, 2023, the company said they prioritized employee safety.

“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,” it said. “We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region.”

They aren’t the only shipping company to pause travel through the straight.

From CNBC:

Shipping giants MSC, Hapag-Lloyd, CMA CGM and Maersk have also all announced suspensions of travel through the Red Sea due to the drone threat, meaning no access to the key link between Europe and Asia between the Middle East and North Africa.

Violence resumed on Monday in the Red Sea, with the U.K. Maritime Trade Organization saying it was alerted that a vessel nearly 30 miles out from Yemen’s port of Mokha “experienced an explosion on its port side.” In a separate note, the UKMTO said that it was informed of an incident whereby vessel AST fired warning shots at a craft with armed personnel that was approaching it.

Earlier Monday, U.S. officials told Reuters the M/V Swan Atlantic — a chemical and oil products tanker — was attacked in the southern Red Sea by multiple projectiles launched from Houthi-controlled territory.

Analysts say the developments could cause a major shock to global supply chains.

“You are going to see some fairly seismic activity in terms of the implications for supply chains” if all current and expected reroutings are sustained, Richard Meade, editor in chief at shipping journal Lloyd’s List, told CNBC Monday before BP declared its suspension.

Oil prices have already picked up sharply since the announcement, with Brent futures with February expiry up by $1.50 per barrel to $78.05 per barrel at 13:19 London time, while the front-month January Nymex WTI contract was higher by $1.44 per barrel to $72.87 per barrel.

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