The situation in the Suez Canal and the Red Sea remains disturbing while the attacks by Houthi militants, who control southern Yemen, continue. The global shipping giant Maersk had paused all its Red Sea sailings on December 31 for 48 hours, following the attempts of Houthis to board its Maersk Hangzhou vessel.
Previously, it was reported that the vessel was hit by a missile in the southern Red Sea, around 55 nautical miles from Yemen, while the destination of the ship was Israel, market sources said. Despite the attack, which was foiled with the help of the US military, Maersk continues to schedule shipping operations in the area, saying it will announce the itinerary for each ship at a later time.
The Houthi attacks are jeopardizing shipping operations in the area and creating disruptions for business, including in the steel segment. “It is certainly adding to the risks of delays in deliveries or, in the worst case, creating the additional cost of re-routing vessels,” a source told SteelOrbis. According to earlier estimations, the re-routing of vessels from Europe to Asia around the southern tip of Africa adds roughly over 3,000 nautical miles and at least 10 days of sailing time.