The world’s top three container operators said they fear instability in Gaza and broader regional tensions mean continued danger.
An explosion forced the crew of a Hong Kong-flagged container ship to abandon the vessel Tuesday near the coast of Yemen, shipping industry officials said.
Supply chains have had to deal with higher shipping costs, product delivery delays, and increased carbon emissions as a result of this diversion. The Gaza ceasefire gave some hope that the disruption would finally end. But shipping lines will not hurry back to the region until long-term security is guaranteed.
The world’s top three container shippers, MSC Mediterranean Shipping, A.P. Møller-Maersk (OTCPK:AMKBY) (OTCPK:AMKBF) and CMA CGM, have said in recent days they will not send vessels back to the Red Sea despite a pledge by Houthi militants in Yemen not to attack them as long as a ceasefire in Gaza holds.
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French shipping and logistics group CMA CGM will continue to avoid the Red Sea even though it considers the region is more stable following the ceasefire agreement between Israel and Hamas, it said on Saturday.
Yemen’s Iran-backed Houthi movement has released the crew of a cargo ship more than a year after its fighters hijacked the vessel in the Red Sea, as part of its campaign of attacks in support of Hamas in its war against Israel.
The Navy’s surface fleet has spent the past 15 months taking down hundreds of missiles and drones fired by Yemen’s Iran-backed Houthi rebels at U.S. and allied Navies’ ships, as well as commercial vessels in and around the Red Sea.
U.S. Navy destroyers and cruisers needing to leave the ongoing battle against Iran-backed Houthi rebel missile and drone barrages in the Red Sea to reload their Mk 41 Vertical Launching System (VLS) missile cells are causing a presence gap and “a real challenge,
The Houthis announced that they targeted the Harry S. Truman Carrier Strike Group on Friday, casting doubt on whether the Yemen-based terrorist group would stop its attacks on ships in the Red Sea following a ceasefire agreement between Israel and Hamas.
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CMA CGM, the French container line that has continued to transit the Red Sea despite attacks on shipping, said it will continue to route most of its affected services away from the region.