Houthi Attacks on Red Sea Shipping Routes Cause Global Disruptions: Industry Reactions

Iran-aligned Houthi militants' attacks on vessels in the Red Sea have disrupted essential east-west trade routes, resulting in higher freight rates and congestion in Asian and European ports. Major shipping companies have reacted by rerouting vessels, suspending operations, and anticipating continued disruptions into 2024.

Iran-aligned Houthi militants' attacks on vessels in the Red Sea have disrupted crucial east-west trade routes, leading to increased freight rates and congestion in Asian and European ports.

French shipping group CMA CGM has suspended most of its Red Sea voyages, with CEO Rodolphe Saade confirming the use of French navy escorts for essential shipments. DIANA SHIPPING has seen a 40% reduction in Suez Canal transits partly due to the rerouting of vessels.

Other significant players like Maersk, MSC, and HAPAG-LLOYD have restructured their routes, anticipating prolonged disruptions. These actions highlight the strategic adjustments made by the shipping industry to mitigate risks and manage the cascading effects on global logistics.

(With inputs from agencies.)