With Houthis Menacing Fleet, Shipping’s Great Detour Around Africa Gathers Pace
Dozens of container ships bringing manufactured goods from Asia to Europe are setting off on arduous detours around Africa — snarling trade and delaying cargo deliveries — after a wave of attacks by Houthi militants on the merchant fleet.
![<div class="paragraphs"><p>Cargo vessels from the Red Sea in the Suez Canal. (Photographer: Camille Delbos/AFP/Getty Images)</p></div>](https://media.assettype.com/bloombergquint%2F2023-12%2F0010537a-5ea5-49bb-939c-a8224f3b522d%2F_1x_1.jpg?rect=0%2C115%2C2200%2C1238&auto=format%2Ccompress&w=200)
(Bloomberg) -- Dozens of container ships bringing manufactured goods from Asia to Europe are setting off on arduous detours around Africa — snarling trade and delaying cargo deliveries — after a wave of attacks by Houthi militants on the merchant fleet.
A.P Moller-Maersk A/S, which owns a fleet of more than 300 container ships and controls many more, said Tuesday that it will divert its fleet around Africa. Iran-backed Houthi militants have vowed to attack any merchant vessel with a connection to Israel, in a move to support the Palestinians, but as violence escalates all ships are seen as potentially vulnerable.
Just hours before Maersk’s announcement, US Defense Secretary Lloyd Austin announced the creation of a task force to protect commercial vessels traveling through the area. The shipping giant’s decision shows it’s not banking on that bringing an immediate halt to attacks. The details are still being worked out, and it’s not clear when it will start work.
![With Houthis Menacing Fleet, Shipping’s Great Detour Around Africa Gathers Pace](https://media.assettype.com/bloombergquint%2F2023-12%2F4901a582-9938-4970-b747-63ea74488950%2F_1x_1.png?auto=format%2Ccompress)
“Once we see what the effect of this increased security in the area will be for shipping, companies will then make an assessment based on that, but it’s very early days for that now,” International Chamber of Shipping Secretary-General Guy Platten told Bloomberg TV.
About 15 merchant ships have come under attack in and around the Red Sea since the war in Gaza began in October. The Yemen-based Houthis are acting to support Hamas — which is designated a terrorist organization by the US and European Union — in its war with Israel. Hindering the international military response are concerns in the region that an overly belligerent approach will only make things worse, with Saudi Arabia urging caution.
![WATCH: Red Sea shipping is grinding to a halt. Alaric Nightingale reports.Source: Bloomberg](https://media.assettype.com/bloombergquint%2F2023-12%2F151243ff-9525-4d9a-8482-f878d9b4c9c5%2F_1x_1.jpg?auto=format%2Ccompress)
The seaway is vital because any ship wanting to get to — or from — Egypt’s Suez Canal to cut between Europe and Asia must go through it. The alternative is to go around Africa, adding weeks to cargo delivery times. And the waterway has become even more important for the transport of oil since Russia’s invasion of Ukraine, especially for Moscow’s own exports. Oil priced have edged higher as companies stepped up their response to the attacks, with BP Plc saying on Monday it would stop all shipments through the Red Sea.
Read: Russia’s War in Ukraine Has Revived Red Sea as a Vital Oil Route
The container shipping firms that have so far paused transits through the region account for 95% of all the transportation capacity deployed through the Suez Canal, according to Clarkson Research Services Ltd., a unit of the world’s largest shipbroker.
There are now 67 container ships that have diverted around the Cape of Good Hope and a further 75 that are delayed and awaiting instructions about how to proceed, Ryan Petersen, the founder of logistics firm Flexport, said on X.
Read: Gulf Splits Hinder US Efforts to End Houthi Ship Attacks
--With assistance from Christian Wienberg, Kati Pohjanpalo, Brian Wingfield, Alex Longley and Rachel Graham.
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