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Maersk planning to reinitiate Red Sea voyages following Yemen attacks
"Task Force Prosperity Guardian established and mobilized to facilitate the flow of maritime trade in the Red Sea and Gulf of Aden."
Danish shipping company Maersk is set to resume navigation through the Red Sea in both eastbound and westbound directions. Plans are underway for the first vessels to transit the area at the earliest possible operational time, with a primary focus on ensuring the safety of employees. Maersk confirmed the activation of the multinational security initiative, Operation Prosperity Guardian (OPG), on December 24, 2023. This initiative facilitates maritime commerce through the Red Sea/Gulf of Aden, allowing a return to utilizing the Suez Canal for Asia-Europe trade routes.
The industry welcomes this development, following Maersk's earlier decision to reroute ships via the Cape of Good Hope and implement surcharges to accommodate an additional 10-21 days. Despite security measures in place, Maersk emphasizes that overall risks persist in the Red Sea/Gulf of Aden region. The company remains vigilant and will reassess the situation, considering diversion plans if necessary for the safety of seafarers. Maritime analyst Lars Jensen highlighted the somewhat uncertain timeline and the acknowledgment that risks may evolve, as outlined in Maersk's official communication.
On December 24, 2023, the U.S. Navy engaged in defensive actions during Operation Prosperity Guardian, intercepting and neutralizing four unmanned aerial drones approaching the USS LABOON in the Southern Red Sea. The incident caused no injuries or damages. Additionally, a Norwegian-flagged M/V Blaamanen and an Indian-flagged M/V Saibaba faced attacks in the Red Sea, though no damages were reported. In the Indian Ocean, a carrier enroute to Mangalore port in India was targeted off the Gujarat coast, leading the Indian Coast Guard ship ICGS Vikram to escort MV Chem Pluto to Mumbai on the same day. Meanwhile, an Iranian leader, Brigadier General Mohammad Reza Naqdi, issued a threat to close off the Mediterranean Sea in response to the ongoing Gaza Strip conflict, indicating potential disruptions in key waterways such as the Strait of Gibraltar. The situation underscores the complex security challenges in the region.
The surge in costs persists on the East Coast of North America, with notable rate increases attributed to vessel re-routes utilizing the Red Sea. Analysts from Xeneta foresee a potential 100% increase in rates following Houthi militia missile attacks on merchant ships in the Bab-el-Mandeb Strait, a critical passage to the Red Sea and Suez Canal. Peter Sand, Chief Analyst at Xeneta, notes the current spike in costs, emphasizing carriers' efforts to recover expenses from rerouting vessels via the Cape of Good Hope amid disruptions, indicating a challenging landscape for businesses with urgent shipment needs.
The attacks on container ships navigating the Red Sea, coupled with widespread diversions via the Cape of Good Hope, led to a notable impact on Drewry's World Container Index, witnessing a 9% surge. Specifically, spot rates from Shanghai to Rotterdam spiked by 16% week-on-week, while rates from Shanghai to Genoa rose by 15%. Drewry anticipates a further increase in East-West spot rates in the upcoming weeks, attributing this projection to the ongoing challenges in the Red Sea/Suez region. The evolving situation continues to shape global container shipping dynamics.