Two major freight firms including MSC, the world’s biggest container shipping line, on Saturday (Dec 16) said they would avoid the Suez Canal as Houthi militants in Yemen stepped up their assaults on commercial vessels in the Red Sea.
Yemen’s Iranian-backed Houthi movement has been attacking vessels in response to the Gaza war on a route that allows East-West trade, especially of oil, to use the Suez Canal to save the time and expense of circumnavigating Africa. War risk insurance premiums have risen as a result.
The Liberian-flagged MSC Palatium III was attacked on Friday with a drone in the Bab al-Mandab Strait off Yemen, at the southern end of the Red Sea, according to the Houthis.
No injuries were reported, but the vessel suffered some fire damage and was taken out of service, MSC said in a statement. Another Liberian-flagged vessel, Hapag Lloyd’s Al Jasrah, was hit by a missile, the US military said.
Denmark’s A.P. Moller-Maersk on Friday paused all its container shipments through Bab al-Mandab until further notice, and was joined on Saturday by the Swiss-based MSC and French shipping group CMA CGM.
“The situation is further deteriorating and concern for safety is increasing,” CMA CGM said in a statement.
German container line Hapag Lloyd has said it might do the same.
