Red Sea disruption: Costs up, crisis may deepen, says official
- Disruptions along the Red Sea trade route have begun pushing up shipping and insurance costs as shippers have begun taking longer routes fearing further attacks,
Key Highlights
- Traders diverting all vessels from Red Sea routes around Africa’s Cape of Good Hope for the foreseeable future, warning customers to prepare for significant disruption.
- Shippers across the world are switching away from the Red Sea (the shortest route from Asia to Europe via the Suez Canal
- After Iranian-backed Houthi militants in Yemen stepped up attacks on vessels in the Gulf region to show their support for Palestinian Islamist group Hamas fighting Israel in Gaza.
- The trip round Africa can add about 10 days to journey times and requires more fuel and crew-time, jacking up shipping costs.
- Denmark’ it would pause all vessels bound for the Red Sea following an attack on one of its ships by Houthi militants, and has since begun redirecting ships around Africa.
- Earlier this week, the US and eleven other countries issued a joint statement reiterating a call for an end to Houthi attacks in the Red Sea.
Red sea
- An inlet of the Indian Ocean between Africa and Asia.
- One of the most saline bodies of water in the world.
- Bordering Countries: Egypt, Saudi Arabia, Yemen, Sudan, Eritrea and Djibouti.
- Connected to the Indian ocean in the south through the Bab el Mandeb strait and the Gulf of Aden.
- In the north are the Sinai Peninsula, the Gulf of Aqaba, and the Gulf of Suez (leading to the Suez Canal).
- It occupies a part of Great Rift Valley (Afro-Arabian Rift Valley).
Prelims Takeaway
- Red sea
- Cape of good hope