Shipping companies are weighing the resumption of operations in the Red Sea amid attacks from Iranian-backed Houthis, as some forge ahead with their return to the route critical for global trade and the Biden administration attempts to further crack down on the incidents.
More than a week since the Biden administration announced the formation of an “international coalition” to protect commercial ships in the region, in recent days, major shipping companies have been split on taking the plunge back into the region.
“At the moment we still consider the situation too dangerous to pass the Red Sea and will continue to re-route via the Cape of Good Hope,” a spokesperson for Germany’s Hapag-Lloyd told Spectrum News in a statement on Thursday.
The spokesperson added the company plans “a next review” of the situation on Friday.
Over the last month, some of the world’s largest shipping companies announced they would reroute vessels to avoid the area as attacks in the region by Houthi rebels mounted following the start of the Israel-Hamas war. Many have yet to announce a change since their decision to hold off on crossings.
A spokesperson for BP, for instance, confirmed to Spectrum News on Thursday that there is no update to its Dec. 18 announcement to temporarily halt gas and oil shipments through the Red Sea.
But it comes as other companies are taking about about venturing back in.
France’s CMA CGM said in a release on Tuesday that some of its vessels “made the transit through the Red Sea” and it was in the process of “devising plans for the gradual increase in the number of vessels transiting through the Suez Canal.”
Nonetheless, the company said it “remains deeply concerned about the recent events in the Red Sea” and the decision is based on “an in-depth evaluation of the security landscape.”
Denmark’s Maersk, meanwhile, plans to allow a number of vessels to transit through the Red Sea and Suez Canal, according to its website. The shipping company announced on Sunday it was preparing to return to the route due to the task force, named Operation Prosperity Guardian, announced by the Biden administration last week.
“As of Sunday 24 December 2023, we have received confirmation that the previously announced multi-national security initiative Operation Prosperity Guardian (OPG) has now been set up and deployed to allow maritime commerce to pass through the Red Sea / Gulf of Aden and once again return to using the Suez Canal as a gateway between Asia and Europe,” Maersk said in a statement. “This is most welcome news for the entire industry and indeed the functionality of global trade.”
Last week, the Biden administration announced it was bringing together the United Kingdom, Bahrain, Canada, France, Italy, Netherlands, Norway, Seychelles and Spain for Operation Prosperity Guardian with the focus of addressing the attacks by the Houthis on shipping vessels in the area.
“Now ships and aircraft from multiple nations are and will continue to join the United States in conducting maritime surveillance and taking defensive action as appropriate to protect commercial ships from the threat posed by the Houthis,” National Security Council Coordinator for Strategic Communications John Kirby said during a press briefing last week.
As recently as Tuesday, a container ship owned by MSC was attacked while transiting the Red Sea, the company confirmed in a press release.
The disruptions and decisions to reroute have raised concerns about delays and rising prices.
On Thursday, in another attempt to respond to the developments, the U.S. announced it is imposing sanctions on a group of money exchange services alleged to help transfer dollars to the Houthis.