Attacks on vessels in the Red Sea by Iran-aligned Houthi militants 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 in February.
DIANA SHIPPING
The company’s vessels are avoiding the Suez Canal.
“Suez Canal transits are running about 40% 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 in February.
DSV
The world’s third-largest freight forwarder DSV said on July 24 that higher freight volume boosted earnings in the second quarter. It also expects a positive impact from the disruptions in the second half of the year.
EURONAV
The Belgian oil tanker firm said in December it would avoid the Red Sea until further notice.
EVERGREEN
The Taiwanese container shipping line said in 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 (NYSE: FRO)
In December, the Norway-based oil tanker group said its vessels would avoid the Red Sea and the Gulf of Aden
GRAM CAR CARRIERS
The Norwegian auto carrier said in December its vessels were restricted from passing through the Red Sea.
HAFNIA
In January, the Norwegian shipping firm said it had halted all ships heading towards or within the Bab al-Mandab Strait.
HAPAG-LLOYD
In January, the German container shipping line decided to reroute its vessels around Africa until further notice.
It said in June it did not expect the industry to resume sailing in the Red Sea even if a ceasefire between Hamas and Israel was reached immediately.
It has also said the disruptions and global vessel oversupply would force it to cut expenses in 2024, including adapting sailings.
HMM
In December, the South Korean container shipper ordered ships that would normally use the Suez Canal to reroute around Africa.
HOEGH AUTOLINERS
In December, the Norwegian auto carrier said it would stop sailing via the Red Sea. In February, it said the disruptions were adversely impacting its capacity and volumes.
KLAVENESS COMBINATION CARRIERS
In January, the Norway-based fleet operator said its vessels would avoid the Red Sea until the situation improves.
KUEHNE + NAGEL
In March, the Swiss logistics group said it expected the impact of the disruptions to last into the coming quarters.
It said on July 23 the impact on its business was “minimal”, and it was ready for higher second-half demand after increased use of its Sea-Air Logistics service.
MAERSK
Maersk said on August 1 that it expected the disruptions to continue at least until the end of 2024, as it raised its full-year outlook again partly due to the crisis.
The Danish group, which has suspended Red Sea traffic, said in July it was experiencing a cascading impact from disruptions in the region, with congestions to its entire ocean network.
MSC
In December, the Mediterranean Shipping Company (MSC) said 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 its vessels, a spokesperson told Reuters in January.
OCEAN NETWORK EXPRESS
In December, the joint venture between Japan’s Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines, and Nippon Yusen said it would reroute vessels around the Cape of Good Hope or temporarily pause journeys and move to safe areas.
OOCL
The Hong Kong-headquartered container group said in December it had instructed 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
In February, Greece-headquartered Star Bulk’s CEO said it would halt sailings through the Red Sea after attacks on 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
In January, the Danish oil tanker group paused all transits through the southern Red Sea for the time being.
WALLENIUS WILHELMSEN
In December, the Norwegian shipping group said it would halt Red Sea transits until further notice.
(Source: Reuters)
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
