Japan's Largest Shipping Companies Continue To Avoid The Red Sea

The global trade continues to be disturbed as Iranian-backed Houthi militants in Yemen have declared the attack on commercial shipments through the Red Sea, a gesture of support for Palestine. As per the latest reports, Japan’s largest shipping companies stated that their shipments with links to Israel will be avoiding the Red Sea area.

Mitsui O.S.K. Lines and Nippon Yusen, largest shipping companies in Japan held that their vessels connecting to Israel will be avoiding Red Sea and added that they are monitoring the situation. Fearing the attack, early in December, shipping companies such as Germany”s Hapag-Lloyd and Denmark“s Maersk (MAERSKb.CO) has stopped using the Red Sea and the Suez Canal, the routes that allows East-West trade. Apparently, container ships have resorted longer routes around Africa via the Cape of Good Hope for trade, and charges heavy fees from the customers depending the extra days or the time that it took to transport goods, reports Reuters. Since the situation remains unresolved, the shipping companies are considering different strategies.

Due to the threats of impending attacks from Yemen”s Houthi militant group, many cargo ships are stranded in the Djibouti port, an entrance to the Red Sea and one of the important transit ports. As per the reports, more than 20,000 ships were passing through the Red Sea each year, constituting 30 per cent of the world’s container volume. It includes passage of oil, gas and many other trades. In the last week, due to the attacks from the Houthis, more than 300 vessels have detoured around Africa, taking 6000 extra nautical miles and causing an additional 12 days of transit time. With the increased transit time and the congestion in other ports, the cost of shipping has significantly increased.

The Houthis of Yemen has declares that they attack only ships carrying goods to Israel. The attack will not be stopped until Israel stops the genocidal war in Gaza, the group added.