Suez Canal Resumes Cargo Ship Traffic Amidst Security Concerns: Impact on Global Freight Traffic and Economy

2023-12-29 22:44:49

Denmark : Cargo ship traffic resumes through Suez Canal, diverted due to threat of terrorist attack. Ships are returning to Suez following US-led military protection.

Earlier this month, container ships abandoned the Red Sea and Suez Canal routes following attacks by Houthi militants in Yemen. The ships were diverted along the eastern cape of North America.

Abandonment of the Suez Canal route had disrupted global freight traffic. In addition to weeks of delays in delivery, customers have to pay huge extra in huge fees. Due to this, it was thought that there will be an increase in the price even of the essential goods coming from India to Europe. Food shortages were also predicted.

One-third of global container cargo ships used the Suez Canal. The diversion of ships through the southern tip of Africa also caused huge fuel losses. Each round between Asia and Northern Europe required an additional million dollars in fuel.This crisis was resolved with US military support.

With military security in place, shipping giant Maersk’s 26 container ships plying between Asia and Europe have been rerouted through the Suez Canal. More than 50 Maersk ships will pass through Suez in the coming weeks, the company said.

At the same time, ships of Maersk’s partner Mediterranean Shipping Company continue to change the Cape of Good Hope route. The response of the companies is that passing through the Suez Canal is dangerous and they will take a new decision following reviewing the situation.

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