What Shipping and Energy Companies Are Doing About Red Sea Chaos
(Bloomberg) -- More than a hundred container ships are taking the long route around Africa to avoid violence in the Red Sea, according to Kuehne+Nagel. Maersk said it could take a few weeks for a task force to be fully operational.
SHIPPING
- Kuehne+Nagel: More than a hundred container ships had changed course as of December 20.
- Maersk
- Could take a few weeks for a Red Sea task force to be fully operational
- Said previously about 20 vessels have changed course
- The company paused voyages in the Red Sea last week after one of its carriers came under attack
- Wallenius Wilhelmsen: Company is rerouting all vessels planned for Red Sea transit via the Cape of Good Hope
- Euronav
- Will avoid the Red Sea until military convoys can protect ships
- Trade will slow if convoys are deployed
- Company said on Dec. 15 it would insist that all its vessels would have an option to sale around the Cape of Good Hope
- HMM
- Company instructed 16 container ships to re-route around the Cape of Good Hope from Dec. 15
- Vessels were sailing to Europe via the Red Sea once or twice a week
- Evergreen Line
- Has suspended its “Israel import and export service due to rising risk and safety considerations with immediate effect until further notice”
- Pause is due to “escalation of war situation in recent days”
- Frontline
- Company is weighing whether to halt Red Sea tanker voyages
- BP’s stand on the issue is greatly appreciated among owners as it is the charterer that controls the routing of their cargoes
- Hapag-Lloyd: Avoiding Red Sea transit; on Dec. 15, the company reported an attacked on one of its vessels
- V. Group: The company, which has access to a pool of more than 44,000 seafarers and manages close to 600 vessels, is advising all of its customers to consider alternatives including diversions
- CMA CGM: French company is rerouting vessels.
ENERGY
- Uniper: Company is no longer using the Red Sea for LNG shipments to Europe
- BP: has temporarily paused all transits through the Red Sea; decision applies to vessels it owns and hires
- Shell and TotalEnergies declined to comment
- Equinor: Company is rerouting ships in the area
- Orlen: Hasn’t received any alarming signals about disruptions in Saudi shipments to the Sidi Kerir terminal, and is monitoring the situation
- Preem: Doesn’t use the Red Sea for crude shipments
- Ineos: Doesn’t typically use the Red Sea for transit; its vessels moves ethane from the US to Europe and to China
- Trafigura and OMV are also monitoring the situation
- Gunvor, Vitol, Glencore, Neste, and Cheniere declined to comment, while several others couldn’t be reached.
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