For global shipping giants such as Hapag-Lloyd in Germany, the choice of whether to return on their journeys through the Red Sea after these attacks by Yemen’s militant group known as the Houthis is now a matter of life and death. As a result, safety concerns caused the cessation of transit through the Red Sea. The shipping companies thus had to reroute themselves via southern Africa (a longer and costlier route than that through the Suez Canal), which is oceanography’s fastest link between Asia and Europe. Now that the situation has changed, Hapag-Lloyd and industry leader Maersk are faced with a new decision whether to go through the Red Sea or continue taking this longer detour.
Maersk’s Decision to Return and the U.S.-Led Security Operation
The security challenges provoked Maersk to say that it intended to resume shipping operations in the Red Sea and Gulf of Aden. The company points to implementing a U.S.-led military mission for securing regional trading as being behind this decision. The U.S.-led initiative to promote a stable environment for shipping reflects the determination of various countries in this regard, and wi. Certainly has an impact on Hapag-Lloyd’s options when it decides whether to follow suit or stay with its rerouting strategy announced last week.
With Hapag-Lloyd preparing to make its decision, the industry is watching very carefully given that economic efficiency versus maritime security will have ramifications beyond any one carrier.
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Source: CNBC
