The Suez Canal, an important artery for world trade, is currently no longer available for major shipping companies’ routes: companies such as MSC, Maersk and Hapag-Lloyd have announced that they will avoid the route and will use the Cape of Good Hope at the southern tip for Asia-Europe traffic until further notice to drive Africa. “The fact that shipping companies are taking the detour of more than 6,000 kilometers around Africa shows the extraordinary danger in the Red Sea,” said Vincent Stamer, trade expert at the Kiel Institute for the World Economy. The reason for the evasive trips is, as reported, attacks by Yemeni Houthi rebels on ships in the Red Sea. Since the outbreak of the Gaza war, the Iran-backed Houthi rebels have repeatedly attacked Israel with drones and rockets, among other things, and attacked ships in the Red Sea to prevent them from passing through to Israel.
Stamer evaluates global ship movements in real time and expects delays of around ten days, but not major disruptions in global supply chains like during Corona times.
The Suez Canal, opened in 1859, connects the Mediterranean and the Red Sea, providing the shortest sea route between Asia and Europe. Around ten percent of all world trade passes through the Red Sea.
safety first
The shipping companies want to avoid the Suez Canal until passage for ships and crew is safe once more.
Not only shipping companies, but also the British energy giant BP is suspending its oil deliveries through the Red Sea for the time being, citing the deteriorating security situation: “The safety of our employees and those who work on our behalf is a priority for BP,” said the company with. After the decision, global oil prices rose. Today, Monday, prices for Brent oil rose by around three percent to 79 euros per barrel.
