Amid escalating security concerns in the Red Sea region, Maersk, a major shipping company, has decided to reroute all container vessels around Africa’s Cape of Good Hope, bypassing Red Sea routes. The move comes in response to increased attacks by Iranian-backed Houthi militants in Yemen, who have targeted vessels in the Gulf region to express support for the Palestinian group Hamas, currently engaged in conflict with Israel in Gaza.
Shippers worldwide are opting for longer routes around Africa instead of the Suez Canal, the shortest route from Asia to Europe via the Red Sea. Hapag Lloyd has reported a significant increase in the costs associated with diverting ships from the usual routes.
The detour around Africa can extend journey times by approximately 10 days, necessitating more fuel and crew-time, leading to a considerable rise in shipping costs. Maersk, in a statement on Friday, emphasized the continuously evolving and highly volatile nature of the situation, stating that the security risk remains significantly elevated.