“The ceasefire agreement brings much-needed humanitarian relief and hope for peace to be restored, and the announcement from the Houthi organization on their plans to cease attacks in the area with peace talks ongoing, is a very welcome step in the right direction towards stability and eventual normality for the global shipping industry,” Maersk said.
The Houthis began attacking commercial ships with missiles, drones, and pirate boats soon after the Palestinian terrorist group Hamas launched the Gaza War by attacking Israel on October 7, 2023. The Houthis claim to have conducted over 200 such attacks, ostensibly on behalf of Palestinians suffering from Israeli military operations in Gaza.
Maersk and other major shipping companies began rerouting their vessels around Africa to avoid the dangerous Red Sea passage, adding billions of dollars to shipping costs.
After Hamas and Israel agreed to a ceasefire last week, the Houthis sent a message to global shipping companies promising to attack only Israeli-owned ships. Few of those companies seem inclined to trust promises from the Yemeni insurgents.
Maersk said on Friday that the resolution of hostilities between Israel and Hamas would be “dependent on a multi-phased roadmap continuing to be met,” so “the predictability of the situation remains a complex challenge.”
“With this in mind – and the safety of our crew, vessels, and your cargo being our utmost priority – Maersk will continue to sail around Africa via the Cape of Good Hope until safe passage through the area is ensured for the longer term,” the company said.
“We will keep you informed of any new developments as soon as possible. When it is deemed safe to return to the Red Sea, we will strive to provide sufficient notice of network alterations so you can plan your operations accordingly,” the statement concluded.
Maersk’s current Red Sea status advisory to clients warns that the situation “remains highly volatile.”
“All available intelligence at hand confirms that the security risk continues to be at a significantly elevated level, and therefore has potential impact on your logistics operations,” the shipping company told its customers.
S&P Global projected last week that “most shipping companies and charterers will continue to route their tankers and cargoes via the longer Cape of Good Hope for the time being.”
Several companies issued statements that echoed Maersk’s point about the impermanence of the current Gaza ceasefire. The Houthis said in their statement to shipping interests that they would resume wanton pirate attacks if the Gaza peace breaks down.
S&P noted that with the high “war risk premium” currently attached to Red Sea shipping, using that route instead of sailing around Africa currently represents “a discount of barely $200,000.” The shipping industry seems unlikely to resume sailing past Yemen until insurance rates come down.
Breitbart News
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