© Reuters.
Investing.com – Shipping giant Maersk (CSE:) said it will divert its ships away from the Red Sea region for the “foreseeable future” in response to the “significantly elevated” security risks posed by recent attacks by the Iran-backed Houthis in Yemen. .
In a statement issued on Friday, the world's second-largest shipping company described the situation in the region – an important trade artery between Europe and Asia – as “extremely volatile.” It added that its ships scheduled to transit through the region would instead be sent south around the Cape of Good Hope in South Africa.
“By suspending flights across the Red Sea [and] “In the Gulf of Aden, we hope to provide our customers with greater consistency and predictability despite the delays associated with changing course,” Maersk said.
However, the company warned customers to prepare for “complications” that may persist in the area.
The announcement comes after Danish company Maersk halted all ships heading to the Red Sea and the nearby Gulf of Aden last week following an attack on its Singapore-flagged ship, the Hangzhou.
The Houthis have been targeting ships in the Red Sea since November in a show of support for Hamas, which is currently locked in a conflict with Israel in the Gaza Strip. Alongside Maersk, several other shipping groups have moved to either suspend travel through the region or take the more expensive route around the Cape of Good Hope.
Analysts at Jefferies said in a note to clients that they expect the turmoil to continue for some time, although the situation remains “fluid.”
“Our base case is that ships will turn during this [the first quarter of 2024] Jefferies analysts said that the company will gradually return to normal operations in the Red Sea during the second half of the year.
