According to a previous report by Caixin News Agency, due to the increasing frequency of attacks on commercial ships near the Red Sea Mand Strait in recent days, the world's two major shipping giants - Maersk in Denmark and Herbert in Germany - announced the suspension of Red Sea routes last Friday (December 15th).
A., which operates the world's second largest container fleet P. M ü ller Maersk Group announced on Friday that it has instructed all ships preparing to pass through the Strait of Mand to "suspend their journeys" and await further notice; Herbert, the world's fifth largest container fleet that has been attacked by merchant ships, announced that all routes through the Red Sea will be suspended until Monday (18th).
On Sunday (17th), there was a latest report that two more shipping groups were suspending operations on the Red Sea route.
The world's largest shipping group, Mediterranean Shipping Company (MSC), announced on Saturday (16th) that it is transferring its ships from the Red Sea due to the increasing threat of attacks; CMA CGM, the world's third-largest shipping company, also took similar measures on the same day.
The cost is high
It is reported that the four companies that have announced the suspension of the Red Sea route currently hold over 50% of the global container shipping market share.
According to LinkedIn's data, MSC's total capacity is 4832709 TEUs (standard containers), with a market share of 18.2%; Maersk has over 4.1 million TEUs, accounting for 15.3% of the market share; The total transportation capacity of Dafei Steamship is about 3.5 million TEUs, with a market share of 13.3%; And Herbert's total transportation capacity is 1.98 million TEUs, accounting for 7.5% of the market share.
According to shipping experts, the four companies that have temporarily suspended operations in the Red Sea region account for four of the world's top five shipping companies (including China COSCO Group), and their decision to suspend Red Sea routes will be costly.
Sue Terpilowski from the Chartered Logistics and Transport Association in the UK pointed out that "if crew members and ships themselves could receive insurance, premiums would now soar, which would have a serious impact on inventory levels, costs, and the overall dynamics of the supply chain."“
Some analysts also point out that the additional costs incurred by shipping companies, such as crew, fuel, and insurance costs, may ultimately be passed on to consumers.
Diversion to Cape of Good Hope
The recently unstable Bab al Mandab is located between Yemen on the Arabian Peninsula and Djibouti and Eritrea on the African coast. It is also known as the "Gate of Tears" and is a 20 mile (32 kilometer) wide strait.
This strait accounts for about 10% of global trade, with approximately 17000 ships passing through it annually.
The Strait of Mandate is closely related to the global shipping arteries, as it is essentially a necessary route for long-distance cargo ships traveling along the Suez Canal route. Taking the Singapore Rotterdam route as an example, under normal circumstances, it will enter the Red Sea from the Strait of Mandate and then cross the Suez Canal into Europe.
Avoiding this waterway means that ships must take longer routes, such as sailing near the Cape of Good Hope in southern Africa.
MSC in
