Half of the container ship fleet currently transiting the Red Sea and Suez Canal regularly is avoiding the route due to threats of attack, latest industry data shows.
Figures show that a voyage around Africa could take 25% longer than using the Suez Canal, which connects Asia to Europe. These routes cost more if the long haul
The attack in the Red Sea was carried out by Yemen's Houthi rebels, who said they targeted ships linked to Israel in support of the Palestinians. But ships with no direct links to Israel are also being targeted, and a U.S.-led task force is trying to bolster security in the crucial waterway as an escalating war threatens global trade.
Some ships are trying to demonstrate their neutrality while continuing to use the route. According to ship tracking data from TankerTrackers, three ships - two container ships and an oil tanker - are currently transiting the waterway and signaling that they have no connection to Israel. this
Ships designated to pass through Suez Canal are being diverted to other routes
Flexport's data trend mirrors another statistic from Swiss freight forwarders Kuehne and Nagel International AG, which showed 364 vessels with a capacity of 5 million 20-foot containers were being rerouted across Africa as of Wednesday. This compares to 314 on December 22.
The figures show the growing scale of chaos at sea after the Houthis launched more than 100 attacks on commercial ships in the past month. The MSC United VIII container ship was attacked on Tuesday while en route from Saudi Arabia to Pakistan.
As of Wednesday, 15 container ships, 10 of which are operated by A.P. Moller-Maersk A/S, were either maintaining course or had recently abandoned plans to reroute to cross the Red Sea to Suez, according to a Flexport analysis of Alphaliner data.
Maersk, the world's second-largest container shipping company, said it was preparing to resume Red Sea routes "as soon as possible". Hapag-Lloyd said it would keep its ships away from the area even after the launch of a U.S.-led task force to protect key trade routes from militant attacks.
Data released by Clarksons Research on Thursday showed that between December 22 and 26, the number of tourists entering the Gulf of Aden fell by 40% compared with the average level in the first half of that month.
Arrivals of container ships dropped by 87%, oil tankers dropped by about 30%, and car carriers dropped by about 25%.
Transits through the Suez Canal were similar, with around 45% fewer ships heading south between December 22 and 26, according to Clarksons data.
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The rerouting at the southern tip of Africa has expanded shipping capacity and increased freight rates. Flexport said the Suez Canal diversion and drought have restricted maritime traffic through the Panama Canal, with the worst-case scenario reducing global shipping capacity by 20%.
“While the U.S.-led coalition may appear to be militarily successful, it may not be enough for major shipping companies to resume Red Sea transit,” DiPippo said. “The longer Houthi attacks continue, the greater the offensive pressure on the U.S., which could lead to regional escalation.”
For companies with cargo on circumventing ships, efforts to track new arrival times are underway.
“This is happening with every vessel that is being rerouted,” said the Flexport founder and CEO. “Teams are working overtime right now to try to keep up with this.”