- Smaller shipping lines persist in operating in the Red Sea despite a recent major attack by Houthis.
- AIS data reveals that four containerships entered the danger zone.
- Operators resort to broadcasting signals indicating their vessels are not Israel-bound to deter potential attacks.
Despite a recent major attack by Houthi rebels in the Red Sea, smaller shipping lines are still operational in the region. The US military, along with its partners, successfully intercepted and shot down 18 attack drones, two anti-ship cruise missiles, and one anti-ship ballistic missile. Fortunately, there was no damage to ships or injuries to the crew, reports The Load Star.
Ongoing Ship Traffic
AIS data reveals that four containerships entered the danger zone this morning, with another six underway. Analyst Lars Jensen suggests the possible presence of CMA CGM and Maersk Atlanta in the area, although not confirmed by AIS.
Risk and Rewards for Shipping Companies
Despite the recent attack, smaller shipping lines continue transiting the area due to the rate premium it commands.
Ship brokers note that companies like Milaha Line, X-Press Feeders, and SeaLead Shipping are chartering vessels for Red Sea trading.
Increased Demand and Rates
Some shipping companies, including Chinese operators, see an opportunity to provide services to the region and command higher rates. Far East-Persian Gulf rates have more than doubled year on year, reaching $2,340 per TEU.
Chartering Activities
SeaLead Shipping and X-Press Feeders have chartered several vessels for Red Sea trading. SeaLead emphasizes precautions such as deploying armed guards, complying with the BMP code, and ensuring no Israeli connections or interests.
Challenges and Redirections
Sourcing vessels becomes challenging as shipowners are hesitant to risk their vessels being attacked by Houthi rebels.
Some operators resort to broadcasting signals indicating their vessels are not Israel-bound to deter potential attacks.
Impact on Shipping Routes
Economic growth in the Middle East has led to increased container shipping capacity in the region. Linerlytica estimates show that 80% of ships previously transiting the Suez Canal now detour around the Cape of Good Hope due to the threat of attacks.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Loadstar
I do not even know how I ended up here, but I thought this post was great. I don’t know who you are but definitely you’re going to a famous blogger if you aren’t already 😉 Cheers!