Houthi attacks on cargo ships passing through the Red Sea and Gulf of Aden could reduce the number of ships passing through the Suez Canal, possibly leading to a global supply chain crisis.
Leading shipping industry expert Peter Sand warned that Houthi missile and drone attacks on cargo ships passing through the Red Sea and Gulf of Aden could reduce the number of ships passing through the Canal. Suez, which could cause a global supply chain crisis.
Mr. Sand, Chief Analyst at market analysis and consulting firm Xeneta, said: “All ships passing through the Suez Canal must pass through the Red Sea and the Gulf of Aden, and the Houthis have made it clear that any Any ship can be a target for attack. “I do not believe that the Suez Canal will have to close, but if there are further significant escalations we cannot rule out the possibility, even if the closure is only for a few days,” he said. .
Mr. Sand commented above after news of the missile attack on the Maersk Hamburg ship. After this attack, there were reports of further attacks by Houthi forces on other ships, including a missile attack on the Hapag-Lloyd ship Al Jasrah, causing a fire. but there were no injuries, and a similar incident occurred against the container ship MSC Palatium III.
True to Mr. Sand’s warning about the impact on the Suez Canal, Maersk shipping company said on December 15 that it would suspend all operations through the Red Sea, and Hapag-Lloyd is also said to be considering doing so. appears similar.
Mr. Sand also recalled the incident more than two years ago, “We have all noted the Ever Given incident in 2021, the serious consequence of this incident was the blockage of the Suez Canal. The supply chain then fell into chaos and it took months to restore order.” He commented, “The shipping industry has been deeply affected by this incident and now people in the industry are really afraid of any situation that could lead to the closure of the Suez Canal.”
Currently, more than 50 ships pass through the Suez Canal every day, carrying billions of dollars of goods to Northern Europe, the Mediterranean and the East Coast of North America.
Xeneta said that with restrictions on ships passing through the Panama Canal due to dry conditions, the latest developments in Suez could not have come at a worse time for the shipping industry.
Mr. Sand added: “We have seen shipping lines and shipowners choose to adjust the itineraries of ships not entering the Red Sea and Gulf of Aden areas,” and explained, “Due to the importance of the Suez Canal for With the global supply chain, even a small disruption can have big consequences. Therefore, the main alternative is for ships to detour down to the Cape of Good Hope, which adds up to 10 days to transit time for routes from Asia to Northern Europe and the Mediterranean.
“We are likely to see significant increases in the cost of shipping goods by sea. Depending on the scale and duration of possible incidents in the vicinity of the Suez Canal, we expect ocean freight rates could increase by up to 100%.”
Source: phaata.com