Global shipping giant Maersk will restart operations in the Red Sea after suspending activity there following attacks by Iran-backed Houthi rebels on commercial vessels. The Danish company announced Sunday that it would resume shipments in the Red Sea and Gulf of Aden following the establishment of a new US-led security operation to safeguard the area.
Denmark’s shipping giant Maersk is ready to start shipping operations in the Red Sea and the Gulf of Aden, citing the deployment of a U.S.-led military operation designed to ensure the safety of commerce in the area.
Resuming Red Sea trade
Operation Prosperity Guardian will once again allow shipping vessels to pass through the area, Maersk said in a statement, in what it called “most welcome news for the entire industry and indeed the functionality of global trade.”
The multinational security operation includes the United Kingdom, Bahrain, Canada, France, Italy, the Netherlands, Norway, Seychelles and Spain.
Shipping giant Maersk stopping trade
The shipping giant Maersk vessels were paused from passing through the Bab el-Mandeb strait earlier in December due to attacks against its ships. That rendered the Suez Canal, which is key to global commerce, unusable for most routes.
Some of the world’s biggest companies, including oil giant BP, recently said they were suspending their operations in the Red Sea, also avoiding the crucial Suez Canal, following attacks on commercial ships by the Houthis, which the militants said were revenge against Israel for its military campaign against Hamas in Gaza.
Rise in shipping cost
Some ships were already being rerouted around the southern tip of Africa, raising concerns that a prolonged effective closure of the Suez Canal would increase freight costs and delivery times. Several other firms have stopped transiting the Red Sea on safety concerns in recent weeks, as has oil major BP.
Shipping costs are rising after Red Sea attacks force vessels to take longer routes. Around 10% to 15% of global trade and 30% of container trade passes through the waterway connecting the Red Sea to the Mediterranean Sea.
Protecting commerce at Red Sea
The U.S. said on Tuesday it was launching a multinational operation to protect commerce in the Red Sea from Iran-backed Yemeni militants, who have been firing drones and missiles at international vessels since last month in what they say is a response to Israel’s war in Gaza.
“As of Sunday 24 December 2023, we have received confirmation that the previously announced multi-national security initiative Operation Prosperity Guardian (OPG) has now been set up and deployed to allow maritime commerce to pass through the Red Sea / Gulf of Aden and once again return to using the Suez Canal as a gateway between Asia and Europe,” Maersk said in a statement on Sunday.
“With the OPG initiative in operation, we are preparing to allow for vessels to resume transit through the Red Sea both eastbound and westbound.”
Shipping giant Maersk on resumption of trade
In its Sunday statement, the firm said it was preparing its first vessels to resume transit through the Red Sea “as soon as operationally possible.”
“While doing so, ensuring the safety of our employees is of the utmost importance and our number one priority in handling the challenging situation,” the company added.
It stressed that while security was being enhanced, “the overall risk in the area is not eliminated at this stage.”
“Maersk will not hesitate to reevaluate the situation and once again initiate diversion plans if we deem it necessary for the safety of our seafarers,” the company said, adding that it would share details on the new arrangement in the coming days.
Maersk said it would release more details in coming days. But it said it could again resort to diverting ship traffic depending on how safety conditions evolved.
On Tuesday, Maersk said it was rerouting ships around Africa via the Cape of Good Hope. It said it would impose container surcharges for shipments from Asia to cover the extra costs associated with the longer journey.
