Maersk, shipping giants reroute Red Sea gas cargoes

Maersk is the latest in a slew of global shipping companies to reroute shipments passing through the Red Sea and the Suez Canal due to security reasons, the Norwegian shipping giant announced on Tuesday.

The company previously announced it had paused shipments through the Bab al-Mandab Strait on Friday following a near-miss incident involving the Maersk Gibraltar on Thursday and another attack on a container vessel on Thursday.

The company has ordered its vessels to sail around Africa via the Cape of Hope due to safety concerns.

Around 12% of the world’s shipping traffic passes through the Suez Canal and 4-8% of global energy cargoes passed through it in 2023.

Qatar, the USA and Russia are the lead shippers through the canal.

Maersk is one of many logistics giants to pause or reroute shipments, including oil and gas player BP, oil tanker group Frontline, Swiss shipping company MSC and German container transporter Hapag Lloyd.

According to Reuters, three LNG vessels so far have adjusted their routes to avoid passing by Yemen.

The incidents are linked to the Iran-backed Houthis group in Yemen that say they are supporting Palestinians in the recent Israel-Palestine conflict by attacking vessels in key shipping lanes.

The USA announced the creation of a task force to safeguard commerce on the Red Sea on Tuesday.

According to investment bank Golden Sachs, disruption in trade flows will not likely affect the cost of crude oil and LNG as vessels can be rerouted.