Shipping companies are grappling with uncertainty as a new international navy coalition, spearheaded by the United States, takes shape to counter attacks in the Red Sea. The initiative, launched on Tuesday, aims to address the escalating assaults by Iran-backed Houthi militants in Yemen, who have intensified their attacks on vessels in support of Hamas amid the ongoing Israeli military offensive in Gaza.
However, details about the coalition’s practical implementation remain scarce, leaving the shipping industry in the dark. Reports from shipping and maritime security officials indicate that key information, such as the number of warships involved, deployment timelines, rules of engagement, and the protection scheme, is yet to be disclosed.
The Houthi militants have employed various tactics, including missile firings and seaborne assaults on ships, disrupting a crucial trade route connecting Europe and North America with Asia through the Suez Canal. These attacks have prompted some shipping companies to divert around Africa, leading to longer routes and increased costs.
Corey Ranslem, CEO of Dryad Global, a British maritime risk advisory company, highlighted the challenges, stating, “Providing protection to commercial vessels in this region could be a major undertaking depending on the number of vessels along with any changes to the Houthi tactics.”
The recent incident on November 19, where Houthi commandos seized a car carrier by helicopter, further underscores the threat to commercial shipping. The attacks have prompted global shipping companies to either divert around Africa or suspend operations in the affected region.
The lack of clarity surrounding the coalition’s scope and effectiveness has fueled concerns within the shipping industry. While U.S. Secretary of Defense Lloyd Austin mentioned the involvement of several nations, including Bahrain, Britain, Canada, France, Italy, the Netherlands, Norway, Seychelles, and Spain, the specifics of the coalition’s actions remain uncertain.
Industry sources express skepticism about the coalition’s potential impact, questioning whether it will go beyond intercepting missiles in the sky. The International Chamber of Shipping anticipates a coordinated effort across military warships to provide a robust response, but doubts linger until concrete actions are observed.
The disruptions in the Red Sea have prompted container shipping companies to continue pausing voyages and rerouting through the longer route around Africa, raising concerns about delays, increased costs, and potential global inflation. As the situation unfolds, shipping companies await more information and tangible results from the coalition’s efforts, emphasizing the need for a successful and effective response to secure maritime trade routes in the region.
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Credit: Catherine Evans
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