Maersk to resume shipping in Red Sea under US-led naval protection

A.P. Moller-Maersk will resume vessel transits via the Red Sea following a 10-day halt, the Danish container shipping line said Dec. 24, displaying confidence in a US-led naval force to protect the key water way despite multiple attacks over the weekend.

In a statement, Maersk, the world's second-largest container line by shipping capacity, said it had received confirmation that the multinational task force was set up and deployed to allow commercial ships to pass through the Red Sea and Gulf of Aden as of Dec. 24.

"We are preparing to allow for vessels to resume transit through the Red Sea both eastbound and westbound," the company said in a statement. "We are currently working on plans for the first vessels to make the transit and for this to happen as soon as operationally possible."

Maersk was the first known shipping company to announce its suspension of Red Sea transits on Dec. 15, and since then nearly a dozen of other box carriers, tanker operators as well as energy majors BP and Equinor have said they would steer their ships and cargoes away from the region amid a spate of Houthi attacks.

In most cases, the diversion from Red Sea and the adjacent Suez Canal would mean ships need to take the longer Cape of Good Hope route, adding two to four weeks to voyage time and supporting freight and energy prices.

On the Southeast Asia-to-East Coast North America route, Platts assessment showed container freight rose to $2,800/FEU Dec. 22, the highest since early September, from $2,250/FEU Dec. 15. Platts is part of S&P Global Commodity Insights.

Dated Brent crude was assessed at $80.775/b Dec. 22, up $7.22/b, or nearly 10% higher than on Dec. 12 when the Houthi attacks intensified.

On Dec. 18, the US said it would launch the Operation Prosperity Guardian to deploy a joint naval task force around the Red Sea to deter further maritime attacks with the UK, Bahrain, Canada, France, Italy, the Netherlands, Norway, the Seychelles and Spain.

The number of countries in this operation later expanded to more than 20, though Spain, France and Italy have indicated they would not be directly involved, according to media reports.

Intensifying attacks

Houthi rebels, supported by Iran, have announced their intention to join the ongoing war between Israel and Iran-backed Hamas, and have attacked more than 15 vessels from Yemen in the Red Sea in recent weeks.

While the Houthis have claimed to be targeting ships with Israeli interests or sailing to Israel, market participants said its target list has expanded to vessels without apparent Israeli links.

On Dec. 23, the Norwegian-flagged, owned and operated tanker Blaamanen reported a near-miss of a Houthi attack drone, and the Gabon-owned tanker Sai Baba was reportedly hit by a one-way drone, according to the US Central Command. No injuries were reported.

The MR Blaamanen was carrying 241,000 barrels of clean petroleum products from Romania to India, while the Suezmax Sai Baba was shipping 828,000 barrels of Russian Urals crude from Ust-Luga to India, according to data from S&P Global Commodities at Sea.

Separately, a drone attack caused an explosion on a vessel in the Indian Ocean near the port of Veraval, the UK Marine Trade Operations said Dec. 23. This was the first incident of such kind in the area in recent times.

The Indian navy has identified the ship as the Liberia-flagged, 21,300-dwt Chem Pluto, which, according to S&P Global Maritime Intelligence Risk Suite, is managed by Ace Quantum Chemical Tankers, in turn backed by Israeli tycoon Idan Ofer.

CAS data showed the ship was sailing from Jubail, Saudi Arabia to Mumbai, India.

The US has said the attack was launched by Iran, while Iran has rejected the accusation, according to media reports.