{"id":77579,"date":"2024-03-25T00:00:00","date_gmt":"2024-03-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/03\/25\/maersk-will-continue-to-reroute-shipments-as-continued-disruptions-and-skirmishes-batter-the-market\/"},"modified":"2024-03-25T00:00:00","modified_gmt":"2024-03-25T00:00:00","slug":"maersk-will-continue-to-reroute-shipments-as-continued-disruptions-and-skirmishes-batter-the-market","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/03\/25\/maersk-will-continue-to-reroute-shipments-as-continued-disruptions-and-skirmishes-batter-the-market\/","title":{"rendered":"Maersk will continue to reroute shipments as continued disruptions and skirmishes batter the market"},"content":{"rendered":"

Shipping giant <\/strong>Maersk will <\/strong>continue to reroute shipments via the Cape of Good Hope and away from the Red Sea<\/strong>, despite the deployment of an EU naval force to the region<\/a>, according to a statement<\/a> released on Friday. Attacks have ramped up despite the deployments and the \u201crisk level in the region remains elevated,\u201d the company said. Recent attacks which saw loss of life aboard the True Confidence<\/a> and the sinking of the Rubymar<\/a> also contributed to the carrier\u2019s decision, it said. <\/p>\n

Older cargo ships with untraceable ins. are choosing to brave the Red Sea route<\/strong>, <\/strong>increasing risks of environmental damage, Bloomberg<\/a> reported on Thursday, citing its own analysis. Ships transiting the Red Sea and the Suez Canal are older and hold murkier ins. information compared with data from last year, research found. <\/p>\n

Houthis have granted <\/strong>China <\/strong>and Russia guarantees of safe passage for their vessels transiting the Red Sea and Gulf of Aden<\/strong>, Bloomberg<\/a> reported on Thursday, citing sources with knowledge of the matter. China and Russia are set to grant the Houthis support in bodies such as the UN Security Council in exchange, the sources said. The nature of this support is so far unclear, but it could include blocking resolutions targeting the Iranian-backed group, Bloomberg said. <\/p>\n

The<\/strong> skirmishes continue: <\/strong>US forces shot down six Houthi unmanned aerial vehicles in the southern Red Sea on Saturday in response to the firing of four anti-ship ballistic missiles towards a Chinese-owned oil tanker, Reuters<\/a> reports, citing a US Central Command (Centcom) statement. A fifth missile was also launched towards the vessel, but no injuries were reported, the newswire said. The preceding day had seen Centcom carry out \u201cself-defense strikes\u201d targeting Houthi underground weapon storage facilities, Reuters<\/a> reported on Saturday, citing a separate Centcom statement. <\/p>\n

Tankers<\/strong> trapped amid Red Sea crossfire pose spillage risk:<\/strong> Two tankers, dubbed FSO Safer and MT Yemen, carrying oil and toxic chemicals remain stuck in the Red Sea near Yemen\u2019s port of Ras Issa, Reuters<\/a> reported on Thursday. Despite urgent calls by the UN to empty the vessels and relocate them to avoid a toxic spill, differences between the Houthis and Yemen\u2019s internationally recognized government on who should benefit from the proceeds from the oil sale remain. A USD 121 mn operation by the UN saw 1 mn barrels of oil transferred from the decaying hull of the FSO Safer to the MT Yemen last August<\/a>. <\/p>\n

MARKET WATCH-<\/p>\n

A shortage in the global tanker fleet may arise if the Red Sea crisis drags on for <\/strong>another six m<\/strong>onths,<\/strong> Kuwait Petroleum Corporation (KPC) CEO Nawaf Al Sabah told CNBC<\/a> last week at the sidelines of the CERAWeek conference in Houston. The company has diverted some shipments around the Cape of Good Hope and is continuing to use the Red Sea route, while leveraging its strategic fleet to ensure that timely deliveries continue. However, continued disruptions may see interruptions to supplies from other producers that do not have the same extra capacity, the executive explained. <\/p>\n

S<\/strong>hippers are eyeing long term charters for tankers as longer <\/strong>journeys, rising risk premiums, and decreased capacity have caused rates to surge<\/strong>, Reuters<\/a> reported last week, citing statements by shipping executives. Charters for Aframax vessels, which can haul some 800k barrels of crude, have ramped up to a daily rate of USD 49.5k up from USD 39k five months ago, the newswire said, citing shipping data. Detours have stretched some voyages by three weeks, hiking costs and tightening availability, while risk premiums for Red Sea transits and tankers going out of service due to sanctions for moving Russian crude<\/a> have further tightened the market. These dynamics have led shippers to prefer long term leases, in order to lock-in rates and save on chartering. <\/p>\n

Surging <\/strong>oil prices on the back of Red Sea disruptions are stoking inflation and <\/strong>weighing down economic growth in India, <\/strong>highlighting the need for the country to diversify its trade routes, Reuters<\/a> reported, citing Friday statements by India\u2019s government. Some 80% of India\u2019s merchandise trade passes through the Red Sea, including essential products such as crude oil, auto parts, chemicals, and textiles, the newswire said. The aggregation of increased freight costs, higher ins. premiums, and longer transit times, can make imported goods \u201csignificantly more expensive,\u201d the newswire cites India\u2019s finance ministry as saying. India\u2019s exports are also impacted by the disruptions, as higher costs make them less competitive. \u201cTo effectively address these challenges, there may be a need to diversify trade routes and transportation options,\u201d India\u2019s finance ministry said, adding that it retains a positive outlook for the country\u2019s economy despite these setbacks. <\/p>\n","protected":false},"excerpt":{"rendered":"

Derelict tanker caught in the crossfire poses environmental 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