21 February 2024 (Lloyd's List) - TWO Cosco Shipping-operated general cargoships with container capacity are set to join the dwindling number of ships prepared to navigate the high-risk Red Sea maritime trade route, which has seen a recent escalation in attacks, with new tactics and weaponry deployed by the Houthi rebels.
While not the first Cosco vessels to re-enter the Red Sea after a mass re-routing around the Cape of Good Hope, the latest voyages signal the company remains undeterred by the security risks and suggest that more could follow.
Hong Kong-flagged, 36,947 dwt Chipol Changjiang (IMO: 9703538) with a capacity to carry 1,800 teu of containers is sailing into the Gulf of Aden, while Liberia-flagged, 33,217 dwt Chipol Taian (IMO: 9509621), able to load 1,134 teu, is heading south towards the Bab el Mandeb Strait, data from Lloyd’s List Intelligence shows.
The move comes as the Houthis recently escalated attacks on merchant shipping, carrying out successive and intense assaults that for the first time left a vessel badly damaged since the strikes began in late 2022.
According to Lloyd’s List Intelligence, total weekly transits for ships above 10,000 dwt through the Strait of Mandeb have fallen more than 50% since mid-December. The decline for general cargo vessels and containerships is down 65% and 42%, respectively.
The two ships are part of the fleet of the Chinese-Polish Joint Stock Shipping Company (Chipolbrok), a 50-50 joint venture between China’s Ministry of Transport and Poland’s Ministry of Maritime Economy and Inland Navigation.
The joint venture headquartered in Shanghai is mainly operated by Chinese giant Cosco. Its fleet of about 30 vessels provides worldwide liner services and transport of heavy-lift project cargoes.
Vessel tracking data shows Chipol Taian was previously deployed on the China-Australia route until December last year. It then sailed from China, rounded the Cape of Good Hope to reach the Mediterranean, and passed through the Suez Canal into the Red Sea on Feb 19.
Meanwhile, the Red Sea route is familiar territory for Chipol Changjiang. It transited via the Suez Canal from China towards Turkey and Europe in August 2023, returning through the canal in October before the Houthi attacks began, calling at Saudi ports of Dhuha and King Abdullah Port along the way. The ship set sail again from China in early February this year.
The two vessels broadcast the notes “CHINESE SHIP & CREW” and “ARMED GUARD ALL CHINESE”, respectively, on their AIS transmissions.
Similar overt displays of Chinese identity have been adopted by many compatriot merchant ships seeking to reduce risk when traversing the Strait of Mandeb. This appears to reinforce an impression that Chinese-linked vessels may be spared from Houthi attacks.
The Iran-backed militia has explicitly stated it would guarantee the safety of ships from China and Russia, although tankers carrying Russian oil have been hit.
The Houthis initially targeted vessels associated with Israel in solidarity over Gaza, but more recently seem to have turned their sights on ships they believe owned by the US and UK, which have launched retaliatory attacks on the Yemeni rebels.
It is unclear what specific reasons or cargo has prompted the two Cosco-operated cargoships to enter the Red Sea.
The route connecting Europe and Asia is shorter and cheaper compared to sailing around Africa. Moreover, with many ships staying away for safety reasons, demand for capacity on this service has climbed, leading to more attractive freight rates.
Smaller Chinese carriers like CU Lines and Sea Legend Shipping have previously moved into this high-risk, high-reward market by opening new strings.
Unverified speculations have even emerged in Chinese freight forwarder circles that the state behemoth is mulling launching a Red Sea Express service to capitalize on the lucrative trade.
A Shenzhen-based forwarder said the Chinese carrier has sent a few ad-hoc vessels to the narrow inlet of the Indian Ocean to support client needs, but no new route has been opened yet.
Like other top-tier liners, almost all Cosco Shipping’s boxship fleet, which used to transit the Red Sea have opted for the longer Cape route for now.
Previously, only two 14,000 teu ships — COSCO Shipping Kilimanjaro (IMO: 9757852) and CSCL Uranus (IMO: 9467304) — were tracked entering the Red Sea in early January. But they both subsequently turned towards the Cape of Good Hope when returning from the Mediterranean to Asia.
However, according to the latest sailing schedules of Chipolbrok published on its website, its Asia-Europe and Asia-Mediterranean services will continue using the shorter Red Sea path. Vessels are expected to arrive at their first port call outside China, Saudi Arabia’s Neom, in early March.
Chipolbrok and Cosco Shipping have been approached for comment.
