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One after another shipping companies are choosing to not put their staff, cargo and equipment in danger through the Red Sea shipping channel. This main route for shipping companies has seen multiple attacks in recent weeks.
Like many Arab nations and groups, Houthi rebels are unhappy with the devastating and deadly Israeli counter offensive in response to the horrific Hamas terrorist attacks of 7th October 2023.
The southern Red Sea and out in to the Arabian Sea have become a target area for Houthi rebels that control much of the Yemeni Red Sea coast. They appear to be targeting any ship that has any connection to Israel. This connection could be in the form of ship ownership or cargo destined for Israel.
Oil giant BP is the latest company to suspend shipping in the area. This follows shipping conglomerate Evergreen's decision to stop taking on board any cargo destined for Israel that would travel through the Red Sea. Many other companies have taken a similar stance. Many others are looking at the situation very carefully.
The alternative route is appropriately 5500 miles (9000Km) extra, south round the horn of Africa. Adding over a week on to the shipping time. This costs a lot more in fuel, which amounts to over half the shipping cost. Other expenses will also rise, for example staff wages and insurance premiums. As always, end consumers will ultimately foot the bill for these extra costs. It is also environmentally more damaging.
About The Author | |
Mike Oday | |
Chewells Contributor |
Mike has been heavily involved in the marine environment all his life. From learning to sail as... »
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