Shipping giants deny ‘safe passage’ pact with Houthis

Shipping lines Hapag-Lloyd of Germany and A.P. Moeller-Maersk of Denmark have denied entering into a deal with Houthi rebels in Yemen that spare their vessels from attacks by the armed group governing parts of the Arabian country, Morning Star reported.

The denial was reported by Bloomberg, according to Morning Star, with Shippingwatch saying that other container carriers were the ones that forged agreements with the Houthis without naming the companies.

The Houthis have been attacking Israel-bound merchant ships passing the Red Sea with drones, missiles, helicopters and boats in protest of the war in Gaza that followed the 7 October attack by Hamas terrorists of the Jewish state.

On Tuesday, American and British warships shot down more than 18 drones and three missiles over the Red Sea that were fired by Houthi rebels from Yemen.

HMS Diamond, a British destroyer, intervened with “her guns and Sea Viper missiles” after the drones were “heading for her and commercial shipping in the area”, United Kingdom Defense Secretary Grant Shapps said.

The United States Central Command said the Houthis had launched “a complex attack of Iranian designed one-way attack UAVs (unmanned aerial vehicles)”, as well as firing anti-ship cruise missiles and an anti-ship ballistic missile from Houthi-controlled areas of Yemen.

They were downed by a combination of F/A-18 warplanes, operating from the USS Dwight D. Eisenhower aircraft carrier, three American destroyers and the British naval vessel, CENTCOM said.

The said warships are part of a multinational naval task force set up by the US last month to protect Red Sea shipping from Houthi attacks, which are endangering a transit route that carries up to 12 percent of global trade.

CENTCOM said US forces also shot down a drone launched from Yemen over the weekend, while Vice Admiral Brad Cooper said the Houthis had launched an explosives-laden sea drone into shipping lanes last week — the first time they had used such a weapon in the current conflict.

Detour

Most large international shipping companies have decided to reroute trading to avoid the Red Sea and Suez Canal.

Maersk is diverting all its vessels around Africa instead of using the Red Sea and Suez Canal for the “foreseeable future.”

Vessels are circumnavigating Africa via the Cape of Good Hope, which extends the journey between Asia and Europe by 10 to 20 days on average, according to Arthur Barillas, general manager of Ovrsea, a freight organizer.

Shipping companies have already announced significant price increases to cover the costs associated with the detour.

French shipping group CMA CGM has doubled the price of a 40-foot container between Asia and the Mediterranean to $6,000.

Italian-Swiss peer and sector leader MSC has hiked its prices to $5,900 from $2,900 for the same offering.

The higher freight rates had boosted stocks of Hapag-Lloyd and Maersk last month, only to be tamed by the rumored pact with the Houthis that will allow their vessels back to the Red Sea and Suez Canal route and return to the previous rates, according to Morning Star.