Red Sea disruption: Shipping firms' answer in face of adversity
Containers are seen on the Maersk's Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, next to cranes at the APM Terminals in the port of Algeciras, Spain, Jan. 20, 2023. (Reuters Photo)


Attacks on vessels in the Red Sea by Iran-aligned Houthi rebels have been disrupting a vital shipping route to east-west trade for a couple of months now, with prolonged rerouting of shipments pushing freight rates up and causing congestion in Asian and European ports.

Below are actions taken by some shipping companies (in alphabetical order):

CMA CGM

The French shipping group has suspended most Red Sea voyages but is still sending some cargoes on a case-by-case basis when French navy escorts are possible, Chairperson and CEO Rodolphe Saade said on Feb. 29.

The company expects disruptions to commercial shipping to last months.

Diana Shipping

The company's vessels are avoiding the Suez Canal.

"Suez Canal transits are running about 40% below those seen during the first half of December last year. This is partially the result of several operators including ourselves avoiding the area," President Anastasios Margaronis said on Feb. 23.

Euronav

The Belgian oil tanker firm said on Dec. 18 it would avoid the Red Sea until further notice.

Evergreen

The Taiwanese container shipping line said on Dec. 18 that its vessels on regional services to Red Sea ports would sail to safe waters nearby, while ships scheduled to pass through the Red Sea would be rerouted around Africa.

Frontline

The Norway-based oil tanker group said on Dec. 18 that its vessels would avoid the Red Sea and the Gulf of Aden.

Gram Car Carriers

The Norwegian auto carrier said on Dec. 21 that its vessels were restricted from passing through the Red Sea.

Hafnia

The Norwegian shipping firm said on Jan. 12 that it had halted all ships heading towards or within the Bab al-Mandab Strait.

Hapag-Lloyd

The German container shipping line, which in January decided to reroute its vessels around Africa until further notice, said on June 11 that it did not expect the shipping industry to resume sailing in the Red Sea even if a ceasefire between Hamas and Israel was reached immediately.

It said on March 14 that the Red Sea disruptions and global vessel oversupply would force it to cut expenses in 2024, including adapting sailings.

HMM

The South Korean container shipper said on Dec. 19 that it had ordered ships that would normally use the Suez Canal to reroute around Africa.

Hoegh Autoliners

The Norwegian auto carrier said on Dec. 20 it would stop sailing via the Red Sea.

On Feb. 8, it said the disruptions were adversely impacting its capacity and volumes.

Klaveness Combination Carriers

The Norway-based fleet operator said on Jan. 16 that it would not trade any of its vessels through the Red Sea until the situation improves.

Kuehne+Nagel

The Swiss logistics group said on March 1 that it expects the impact of the Red Sea crisis to last into the coming quarters and impact its second-quarter operating profit in a low double-digit million Swiss francs range.

On April 23, CEO Stefan Paul said during a conference call that the company expected freight rates to normalize towards the end of the second quarter.

Maersk

The Danish shipping group, which suspended Red Sea traffic on Jan. 5 "for the foreseeable future," said on May 6 that the disruption to container shipping traffic was increasing and was expected to reduce the industry's capacity between Asia and Europe by some 15-20% in the second quarter.

On July 1, it said the upcoming months would be challenging for carriers and businesses, as disruptions continue into the third quarter. It had in May forecast that the disruptions would last at least until the end of 2024.

MSC

Mediterranean Shipping Company (MSC) said on Dec. 16 that its ships would not transit through the Suez Canal.

Nippon Yussen

Japan's biggest shipper by sales suspended navigation through the Red Sea for all vessels it operates, a spokesperson told Reuters on Jan. 16.

Ocean Network Express

The joint venture between Japan's Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines, and Nippon Yusen said on Dec. 19 that it would reroute vessels from the Red Sea to the Cape of Good Hope or temporarily pause journeys and move to safe areas.

OOCL

The Hong Kong-headquartered container group Orient Overseas Container Line (OOCL) said on Dec. 21 it had instructed its vessels to either divert away from the Red Sea or suspend sailing. It also stopped accepting cargo to and from Israel until further notice.

Star Bulk

Star Bulk's CEO said on Feb. 13 that the Greece-headquartered company would halt sailings through the Red Sea after Houthis attacked two of its ships.

TAILWIND Shipping Lines

The Lidl unit, which transports non-food goods for the discount supermarket chain and goods for third-party customers, said in December it was sailing around Africa for now.

Torm

The Danish oil tanker group said on Jan. 12 that it had decided to pause all transits through the southern Red Sea for now.

Wallenius Wilhelmsen

The Norwegian shipping group said on Dec. 19 it would halt Red Sea transits until further notice.

Yang Ming Marine Transport

The Taiwanese container shipping company said on Dec. 18 that it would divert ships via the Cape of Good Hope for the next two weeks. It has given no further update.