- Smaller Chinese shipping lines are seizing an opportunity in the Red Sea crisis by redeploying vessels to ports like Doraleh, Hodeidah, and Jeddah, which have seen reduced traffic due to Houthi attacks.
- Analysts suggest that Chinese operators are exploiting their perceived immunity from such attacks, aiming to win business in the vacuum left by other shipping lines.
- The move comes as larger container shipping lines, including China’s Cosco, withdrew from the region due to security risks.
Smaller Chinese shipping lines, including Transfar Shipping and Sea Legend, have redirected vessels to serve Red Sea ports such as Doraleh in Djibouti, Hodeidah in Yemen, and Jeddah in Saudi Arabia. This strategic move aims to take advantage of China’s perceived immunity from Houthi attacks, which have prompted major international operators to reroute away from the region.
Commercial Interests Drive Chinese Fleet Redeployment
Chinese shipping companies like Transfar Shipping and China United Lines (CULines) are driven by commercial interests to exploit the capacity gap created by the withdrawal of other major players. Analysts suggest that this opportunistic approach, previously observed during the Covid-19 disruptions, allows these lines to meet the rising demand in the Red Sea region.
Red Sea Disruption: A Risky Opportunity for Chinese Lines
The move by Chinese shipping lines is deemed opportunistic and risky, requiring shippers to evaluate the trade-off between the potential benefits and security risks. While the new entrants seek to emphasize their Chinese identity through flag displays and naval escorts, experts predict that these ventures might be short-lived, disappearing once the disruption in the Red Sea subsides.
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Source: Financial Times
Such attitude could be seen by International shipping community as China with good relationship with Iran is trying to monopolise the trans RED SEA trade taking advantage on the crisis.