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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