FACTBOX - Shipping firms respond to Houthi attacks in Red Sea

Attacks on vessels in the Red Sea by the Houthis have disrupted a shipping route vital to east-west trade, with prolonged rerouting of shipments pushing freight rates higher and causing congestion in Asian and European ports.

Below are actions taken by some shipping companies (in alphabetical order):

CMA CGM

The French shipping group has suspended most Red Sea voyages but is still sending some cargoes on a case by case basis when French navy escorts are possible, Chairman and CEO, Rodolphe Saade said on 29 February.

The company expects disruptions to commercial shipping to last months.

READ: Houthis say they targeted 4 addition Israel-linked ships in Red, Mediterranean seas

Diana Shipping 

The company’s vessels are avoiding the Suez Canal.

“Suez Canal transits are running about 40 per cent below those seen during the first half of December last year. This is partially the result of several operators including ourselves avoiding the area,” President Anastasios Margaronis said on 23 February.

Euronav  

The Belgian oil tanker firm said on 18 December it would avoid the Red Sea until further notice.

Evergreen  

The Taiwanese container shipping line said on 18 December its vessels on regional services to Red Sea ports would sail to safe waters nearby, while ships scheduled to pass through the Red Sea would be rerouted around Africa.

Frontline 

The Norway-based oil tanker group said on 18 December that its vessels would avoid the Red Sea and the Gulf of Aden.

Gram Car Carriers 

The Norwegian auto carrier said on 21 December its vessels were restricted from passing through the Red Sea.

Hafnia 

The Norwegian shipping firm said on 12 January it had halted all ships heading towards or within the Bab Al-Mandeb Strait.

Hapag-Lloyed 

The German container shipping line, which in January decided to reroute its vessels around Africa until further notice, said on 11 June it did not expect the shipping industry to resume sailing in the Red Sea even if a ceasefire between Hamas and Israel was reached immediately.

READ: Yemen Houthis say they targeted ship in Haifa port with Islamic Resistance in Iraq

It said on 14 March that the Red Sea disruptions and global vessel oversupply would force it to cut expenses in 2024, including adapting sailings.

HMM 011200.KS

The South Korean container shipper said on 19 December it had ordered ships that would normally use the Suez Canal to reroute around Africa.

Hoegh Autoliners

The Norwegian auto carrier said on 20 December it would stop sailing via the Red Sea.

On 8 February, it said the disruptions were adversely impacting its capacity and volumes.

Klaveness Combination Carriers 

The Norway-based fleet operator said on 16 January it would not trade any of its vessels through the Red Sea until the situation improves.

Kuehne + Nagel Knin 

The Swiss logistics group said on 1 March it expects the impact from the Red Sea crisis to last into the coming quarters and impact its second-quarter operating profit in a low double-digit million Swiss francs range.

On April 23, CEO Stefan Paul said during a conference call that the company expected freight rates to normalise towards the end of the second quarter.

Maersk 

The Danish shipping group, which suspended Red Sea traffic on 5 January “for the foreseeable future”, said on 6 May that the disruption to container shipping traffic was increasing and was expected to reduce the industry’s capacity between Asia and Europe by some 15-20 per cent in the second quarter.

On 1 July, it said the upcoming months would be challenging for carriers and businesses, as disruptions continue into the third quarter. It had, in May, forecast that the disruptions would last at least until the end of 2024.

READ: Houthi leader says another ship will sink in Gulf of Aden

MSC

Mediterranean Shipping Company (MSC) said on 16 December its ships would not transit through the Suez Canal.

Nippon Yusen 

Japan’s biggest shipper by sales suspended navigation through the Red Sea for all vessels it operates, a spokesperson told Reuters on 16 January.

Ocean Network Express 

The joint venture between Japan’s Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines and Nippon Yusen said on 19 December it would reroute vessels from the Red Sea to the Cape of Good Hope or temporarily pause journeys and move to safe areas.

OOCL

The Hong Kong-headquartered container group said on 21 December it had instructed its vessels to either divert away from the Red Sea or suspend sailing. It also stopped accepting cargo to and from Israel until further notice.

Star Bulk 

Star Bulk’s CEO said on 13 February that the Greece-headquartered company would halt sailings through the Red Sea after Houthis attacked two of its ships.

Tailwind Shipping Lines 

The Lidl unit, which transports non-food goods for the discount supermarket chain and goods for third-party customers, said in December it was sailing around Africa for now.

Torm TRMDa.Co

The Danish oil tanker group said on 12 January it had decided to pause all transits through the southern Red Sea for now.

Wallenius Wilhemsen Wawi 

The Norwegian shipping group said on 19 December it would halt Red Sea transits until further notice.

Yang Ming Marine Transport

The Taiwanese container shipping company said on 18 December it would divert ships via the Cape of Good Hope for the next two weeks. It has given no further update.

READ: Yemen’s Houthis used ‘new weapons’ in latest Red Sea operation