Route diversions around Africa mean longer transport times and higher prices. The ongoing disruption of shipping in the Red Sea is having repercussions for chemical industry supply chains. With Iran-backed Houthis in Yemen stepping up their strikes on cargo ships in support of Hamas in its war with Israel, reports Chemistry World.
About the attacks
Houthis have launched dozens of attacks against ships in the Red Sea since late 2023, including firing drones and missiles and even boarding and seizing vessels, including several that have no apparent links with Israel. US and UK-owned ships are among those that have been targeted. These assaults have escalated considerably in recent weeks, and major shipping firms have stopped using the route for safety reasons. Meanwhile, US, British and allied forces have responded with air and sea strikes on Houthi targets in Yemen.
The resultant route diversions are having significant time and cost implications for the chemical industry, as ocean shipping rates have continued to climb.
About 30% of the world’s ocean carrier traffic normally goes through the Red Sea, according to Eric Byer, president of the Alliance for Chemical Distribution (ACD), a US trade group. But now ships between Europe and Asia are instead going around the Cape of Good Hope on the southern tip of Africa, which he says can add between ten days and three or four weeks of travel time compared to passage via the Red Sea and the Suez canal.
The diversions are also affecting shipping between the US Gulf Coast and South Asia, with ships going around the Cape of Good Hope. While some routes could potentially divert through the Panama Canal and across the Pacific Ocean, a severe drought that began last year has led authorities to cut ship transits in the Panama Canal by more than 30%.
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Source: Chemistry World
