Major shipping carriers remain deeply divided on sending new vessels through the Suez Canal and the hazardous Red Sea despite the US’ effort to bring online ‘Operation Prosperity Guardian.’ There were reports last week that shipping giant Maersk was preparing to restart container ship transits in the critical waterway.
X user Sal Mercogliano, citing MarineTraffic data, said, “Operation Prosperity Guardian successfully escorted two US-flagged ships of @MaerskLineLtd through the Bab el-Mandeb.”
Mercogliano noted, “One of the ships was escorted by a French frigate, showing that the @CMF_Bahrain international cooperation has improved.”
Operation Prosperity Guardian successfully escorted two US-flagged ships of @MaerskLineLtd through the Bab el-Mandeb. One of the ships was escorted by a French frigate, showing that the @CMF_Bahrain international cooperation has improved.@Maersk is preparing to run about a… pic.twitter.com/yW0JdymnW1
— Sal Mercogliano (WGOW Shipping) 🚢⚓🐪🚒🏴☠️ (@mercoglianos) December 30, 2023
He added that Maersk is “preparing to run about a dozen 8k+ TEU containerships through the region, along with single ships of @cmacgm and @COSCOSHIPPING.”
Last week, Maersk stated: “We continue to prepare our vessels for passage through the Red Sea, and any deviation from this decision will be looked at on a case-by-case basis.”
Meanwhile, German shipper Hapag-Lloyd said its container ships are still avoiding the Red Sea region.
Many of the world’s largest shipping companies have rerouted ships around the Cape of Good Hope to avoid drone and missile attacks in the Red Sea from Iran-backed Houthi militia in Yemen.
UBS analysts have said more than 400 cargo ships have been rerouted on the 6,000-nautical-mile detour, which effectively reduces the capacity of Asia-to-Europe trade by a quarter. This drives up shipping costs at a time when global central banks have aggressively raised interest rates to curb inflation.
The news of Maersk sending ships through the Red Sea is a positive development. Yet, the overhang that another vessel attack could be imminent is unsettling for shipping companies.
We wonder just how much that escort cost US taxpayers.
Tyler Durden
Sat, 12/30/2023 – 15:45
