Maersk Diverts 20 Ships Paused Near Red Sea Citing "Significant Threat"

Maersk confirmed after pausing all of its containerships near the Red Sea it has determined to reroute approximately 20 vessels due to what it calls the “alarming” attacks and the “significant threat to the safety and security of seafarers.” The world’s second-largest container shipping company follows a growing list of shipping companies including container carriers, oil tankers, LNG and LPG carriers, and car transports all reporting that they have begun to reroute vessels despite the U.S. announcement yesterday of a coalition task force.

The situation in the area around Yemen and the Red Sea appears relatively stable today after a series of attacks over the past few days. UK Trade Organizations received reports of one or two possible approaches by small boats today, December 19, but the crews did not see weapons and stated that the small boats withdrew. There are no reports of drone or missile attacks.

A spokesman for UK Prime Minister Rishi Sunak confirmed to Reuters that the UK is part of the task force and France announced its participation, but the UK said other than HMS Diamond it does not plan at this time to send additional vessels to the region. They highlighted that the U.S. has three warships now in the area while telling Reuters that the task force would have considerable capacity to deter future attacks and protect commercial shipping.

“We are pleased to see global governments reacting promptly,” Maersk said in its statement indicating that it is hopeful to stop the rerouting “in the near future,” but saying the timing for a resumption of service through the Red Sea “remains difficult to determine.”

Maersk reports that it had nearly 20 ships holding north and south of the Suez Canal and east of the Gulf of Aden. All will now be rerouted around Africa via the Cape of Good Hope. The company reiterated that it remains “deeply concerned about the situation,” and will consider its next steps. They are planning a case-by-case assessment for future sailings, which could include diversions via the Cape of Good Hope or further contingency measures.

Asian carriers were also among the companies announcing overnight that they were altering their sailing plans. HMM, Evergreen, Wan Hai, and Yang Ming all reported plans to suspend sailing through the Red Sea. They followed the lead of the world’s largest container carriers, including MSC, Hapag-Lloyd, and CMA CGM which all reported similar actions.

Analysts highlight that all the planned diversions will require additional capacity for the carriers to maintain service. Lars Jensen, chief executive of Vespucci Maritime, estimated for Lloyd’s List that the diversions would require up to 1.7 million TEU and involve five to six percent of the sector’s capacity helping to reduce the current overcapacity for containerships. 

Norway-based vehicle transport company Wallenius Wilhelmsen also cited the “deteriorating security situation,” reporting that it will reroute all vessels planned for Red Sea transits. They said several vessels have been successfully diverted warning shippers that it will add between one and two weeks to the duration of the voyage.