Middle East conflict creates risk for container shipping routes

Middle East conflict creates risk for container shipping routes

Container line ONE rerouted two of its container vessels last week and an attack against a CMA CGM ship occurred Friday

Risk to maritime shipping in areas of political conflict was brought into focus last week.


On 18 November, the NYK-chartered car carrier Galaxy Leader was hijacked by rebels belonging to Houthi forces. The political reasons behind the incident prompted some ship owners and carriers to take immediate preemptive measures.


Since then, two more incidents have occurred, one involving a CMA CGM containership.


According to a Reuters report, a US defence official said they suspect the ship was attacked by a drone in the northeast of the Indian Ocean. The source added the ship sustained minor damage, but no injuries were reported among crew members.


Two days later, the US Navy revealed that they responded to a distress call from a commercial tanker in the Gulf of Aden. The tanker was seized by armed individuals who attempted to escape but were caught by the US Navy.


Ship-owners reaction


After the news of the Galaxy Leader, two other car carriers owned by the same company decided to change their route to avoid the risk of a new Houthi attack.


The Hermes Leader and the Glovis Star were both sailing in the region when the incident occurred. The Hermes Leader was heading towards the Red Sea when it changed course directly after the attack.


Meanwhile, the Glovis Star had passed the Suez Canal on its way to Asia but later turned back to the Canal to avoid passing the Bab al-Mandeb Strait.


First container line to divert vessels


The first container carrier to announce a precautionary action was Singapore-based Ocean Network Express (ONE). The company informed stakeholders that it would reroute two boxships to sail via Africa’s Cape of Good Hope instead of sailing to the Suez Canal through the Gulf of Aden.


The question remains if other carriers will follow suit. Numerous commercial ships on the Asia-Mediterranean/Black Sea and Asia-Europe routes need to pass risk areas to reach or exit the Suez Canal.


Number of containerships at risk


According to Clarkson’s vessel database, over 30 operational container vessels can be at risk. Leading carriers, including ZIM, MSC, Maersk and HMM, operate some of these vessels.


Maritime industry experts fear that if the conflict escalates, more carriers will take steps to maintain the safety of shipments. The route diversion could lead to delays ranging from one to two weeks.

Source: ONE, Clarkson, Lloyd's List, Reuters