Actions and Comments from Major Shipping Companies and Forwarders Regarding Red Sea Disruptions
The attacks by Iran-aligned Houthi militants against ships in the Red Sea have disrupted a vital east-west maritime route. The prolonged rerouting of cargoes is driving up freight rates and causing congestion at ports in Asia and Europe. Below is an alphabetical summary of some actions and comments from leading shipping companies and forwarders:
CMA CGM
The French maritime group has suspended most of its voyages in the Red Sea, although CEO Rodolphe Saade stated in February that some shipments continue on a case-by-case basis when French naval escorts are available.
DIANA SHIPPING
« Transit volumes through the Suez Canal are about 40% lower compared to the first half of December last year. This is partly due to several operators, including ourselves, avoiding the area, » said President Anastasios Margaronis in February.
DSV
The world’s third-largest forwarder, DSV, stated in July that increased freight volumes had boosted second-quarter profits. The company also expects the disruptions to have a positive impact in the second half of the year.
EVERGREEN
The Taiwanese container shipping company announced in December that its ships operating regional services to Red Sea ports would navigate to nearby safe waters, while vessels needing to pass through the Red Sea would be rerouted around Africa.
HAPAG-LLOYD
The German container shipping company decided in January to reroute its ships around Africa until further notice.
« For now, we plan to bypass the Cape of Good Hope until the end of the year, » said CEO Rolf Habben Jansen on August 14.
The company stated in June that it did not expect the sector to resume operations in the Red Sea even if a ceasefire between Hamas and Israel was immediately concluded.
It also mentioned that disruptions and a global oversupply of ships would force it to cut spending in 2024, including by adjusting its routes.
KUEHNE + NAGEL
The Swiss logistics group stated in March that it expected the impact of the disruptions to continue in the coming quarters.
On July 23, it mentioned that the impact on its operations was minimal and that it was prepared to handle an increase in demand in the second half of the year through increased use of its Sea-Air Logistics service.
MAERSK
Maersk stated on August 1 that it expected the disruptions to continue at least until the end of 2024 and revised its full-year outlook upward, partly due to the crisis.
The Danish group, which has suspended its Red Sea traffic, reported in July that it was experiencing a cascading impact from the disruptions in the region, with congestion across its entire ocean network.
MSC
Mediterranean Shipping Company (MSC) announced in December that its ships would not transit through the Suez Canal.
NIPPON YUSEN
The largest Japanese carrier by revenue suspended Red Sea navigation for all its vessels, according to a spokesperson who spoke to Reuters in January.
OCEAN NETWORK EXPRESS
The joint venture between Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines, and Nippon Yusen stated in December that it would redirect ships around the Cape of Good Hope or temporarily suspend voyages and move to safe areas.
OOCL
The Hong Kong-based container transport group stated in December that it had instructed its ships to either divert from the Red Sea or suspend their voyages. It also stopped accepting cargo to and from Israel until further notice.
Source: Zone Bourse
