World's major shipping firms decide on their Red Sea routes

Germany's shipping and container transportation major Hapag-Lloyd will decide on Wednesday on how to proceed with its Red Sea routes after suspending shipments in response to safety concerns, an official spokesperson informed.

Earlier this month, Oil and gas giant BP along with major shipping firms like Maersk, MSC and Hapag-Lloyd, paused shipments through the Red Sea after Yemen's Houthi militant group began targeting vessels, causing disruption in global trade through the Suez Canal.

The Iran-backed Houthis describe their continued actions as a “victory for the oppression of the Palestinian people”, and say they’ll “continue to prevent all ships heading to Israeli ports” until food and medicine is delivered to Gaza, as per an International Intrigue report.

As a result of these attacks, oil prices jumped 1 per cent and European gas prices were up as much as 7 per cent on December 18, while the markets digested the link between shipping and energy costs, though supplies were seen to be broadly robust, it said.

The major shipping firms had chosen to reroute through southern Africa, adding a couple of more weeks to the already long journey, becoming more expensive, while the Suez canal continues to remain the quickest sea route between Asia and Europe, it added.

Recently, the Danish shipping company Maersk decided on making arrangements to resume shipping operations in the Red Sea and the Gulf of Aden, the company said on Sunday, citing the deployment of a US-led military operation designed to ensure the safety of commerce in the area, as per media reports.

The company had said last week it would redirect 25 ships by the end of the year to avoid the area.