Red Sea Attacks Force Firms To Test New Land Routes

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  • Commercial trade routes open through land in the Middle East amid the Red Sea situations.
  • More companies have been rerouting their ships to travel around Africa to prevent assaults on their vessels and crews.

There is an opening of commercial trade routes through land in the Middle East due to the situation in the Red Sea, reports Safety4sea quoting Bloomberg.

Red Sea crisis 

As Bloomberg reports, an Israeli software startup, Trucknet Enterprise, is sending goods from the UAE and Bahrain through Saudi Arabia, Jordan, and Israel to Europe, providing an alternative route to bypass the Houthi-threatened Red Sea. Meanwhile, Hapag-Lloyd is exploring links between Dubai and Saudi ports to Jeddah, offering a short-term solution for shippers affected by the disruptions in the Red Sea.

Due to continuous attacks in the Red Sea, more and more companies have been rerouting their ships to travel around Africa to prevent assaults on their vessels and crews. Alas, rerouting might extend the Asia–Europe journey by 8–15 days, and add an additional 3,000–3,500 nautical miles (6,000km) to the existing route, which is bad news both for costs and emissions.

Additionally, as reported by Reuters, shipping group CMA CGM on Friday has suspended until further notice all crossings by its vessels of the Bab al-Mandab Strait in and out of the Red Sea due to security risks. The decision was taken after the latest attacks on vessels by Houthi militants in Yemen, including the targetting this week of a convoy containing CMA CGM-operated ships, a source told Reuters.

The land route from Jebel Ali to Israel’s Haifa is shorter than the journey around Africa, making it appealing for some shipments. The success of these routes depends on regional stability, and while it offers an alternative for certain goods, the volumes carried by trucks are smaller than those transported by ships, Bloomberg notes.

Furthermore, the land routes might also serve as a trial for the larger India-Middle East-Europe Economic Corridor, although obstacles remain, including diplomatic challenges and potential security risks.

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Source: Safety4sea

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