Container ships anchored in the Red Sea and other civilian vessels in the area have turned off their tracking systems as traders adjust routes and prices in response to maritime attacks by Iran-aligned Houthis from Yemen in support of Hamas and the Palestinian cause against Israel.
This meant that most ships might have to divert from passing through the Suez Canal to a longer route through the Cape of Good Hope at the southern tip of Africa, marking another series of disruptions to international commerce following the upheaval of the COVID pandemic, as well as the presence of US-led international force patrolling the waters near Yemen.
The Suez Canal provides ships with the shortest route between Europe and Asia and links the Mediterranean to the Red Sea and the Indian Ocean.
Among the companies avoiding the Red Sea include shippers Maersk and Hapag Lloyd, oil firm BP, and oil tanker group Frontline.
Last week, Maersk announced it would pause all container shipments through the Red Sea following a "near-miss incident" involving its vessel, the Maersk Gibraltar, on December 14.
On Tuesday (December 19), it said that the vessels previously paused through the southern Red Sea and the Gulf of Aden were to be rerouted around Africa.
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Trading Volatile Due to Houthi Attacks
However, many ships still pass through the Suez, especially vessels that have armed guards on board.
At least 11 container ships that passed through the Suez and were approaching Yemen carrying consumer goods bound for ports in Singapore, Malaysia, and the United Arab Emirates were now anchored in the Red Sea between Sudan and Saudi Arabia, according to LSEG ship tracking data obtained by Reuters.
Vortexa senior freight analyst Ioannis Papadimitriou said that some of the ships have turned their transponders off or masked their positions by pinging on other locations as safety precautions when entering the Yemen coastline.
Industry sources said that the impact on global trade would depend on how long the crisis in the Middle East would persist, but insurance premiums and longer routes would be immediate burdens.
Papadimitriou also said on Tuesday that the price of a Suezmax to carry crude from the Middle East to Europe rose by 25% in a week.
