The Red Sea exodus is gaining traction in multiple sectors with Egypt coming to terms with the fact that it will take a very big hit in revenues generated from Suez Canal transits this year.
Suez Canal transits generated $10.25bn in revenues for Egypt last year. Transit numbers were down 30% in the opening 11 days of January, and plummeted further in recent days as the Houthis in Yemen – abetted by Iranian intelligence and armaments – widen their targets.
Exclusive playback videos created by MarineTraffic for Splash carried at the bottom of this article show Suez transits for the whole day January 16 last year compared to yesterday, highlighting clearly the dramatic shift in world trade.
While container shipping has led the way in veering away from the Suez, as highlighted in the most recent weekly market report from Alphaliner, other sectors including LNG, oil and dry bulk are following suit.
Multiple oil companies such as Shell, ADNOC and Reliance Industries have this week joined BP in suspending their sailings through the Red Sea.
Splash reported yesterday on the Greek-owned bulk carrier Zografia being struck by an explosive device while transiting the southern Red Sea bound for Israel. Following US and UK strikes on Houthi militants last week, a bulker owned by US-based Eagle Bulk Shipping was struck earlier in the week by a missile in the Gulf of Aden. Further sightings of drones and skiffs have been reported this morning.
Jittery insurers are raising premiums and ships with links to the US, UK or Israel are facing added pressure from their insurance providers.
“Underwriters are adding clauses saying no US, UK or Israeli involvement,” Marcus Baker, global head of marine and cargo at Marsh, told Bloomberg yesterday. “Just about everybody is putting something like that in, and many include the words ‘ownership’ or ‘interest’.”
“Shipowners and charterers may find that rerouting around Africa is more cost-effective than incurring the combined costs of Suez Canal transit fees and insurance premiums,” broker Clarksons Securities said in a note this week.
The US military carried out a new strike in Yemen on Tuesday against anti-ship ballistic missiles in a Houthi-controlled part of the country.
Pictured below, traffic along the Suez yesterday (right) compared to the same day a year ago (left).
The Houthis have little regard for global warming, the additional carbon footprint through going around the Cape will be huge.
One little country standing up for the people of gaza and all y’all can think about is yourself on the planet . And president biden is paid by israel to allow them to do whatever they want and y’all no this. The united states of israel is the most dangerous terrorist on the planet
Don’t be silly putin and hamas terrorists don’t take hostages then u won’t get bombed
Correct! He has a Jewish government too!
Agree 💯%
International trade should be protected against attack by terrorists. Its time the world stood up to dictators and those who hide behind so called religious idealism. Targeting civilians as opposed to legitimate military and terror groups is fundamental wrong no matter whether its hamas isreal usa or anybody . Normal sea mariners bring grain and clothing and anything else to feed cloth and general life for children and adults all over the world. An attack on a merchant ship is attacking children and people of all religious faiths across the world.
All things trade yes , beneficial to all except the woman and children of Gaza .
You start with “one little country ” this terrorist nation is holding the world hostage with unnecessary price increases and unnecessary pollution.Please spare us your thoughts from your “one little mind”
israel should pay for this. This can all be stopped when US realizes that the culprit is israel an stop funding the genocidal zionists.
Don’t blame Israel. Everyone forgets about October 7 massacre. Hamas is using civilians as human shields. Don’t you people see that?
Hamas is a terrorist organization, and no one should be standing up for what they did. Your comments are ridiculous.
Like Israelis
And they have no regard for human life nor human rights. You seafarers, mariners and captains are through no fault of your own nor your companies are being forced to take longer routes just to keep yourselves, ships and cargoes and or passengers as safe as possible. From what I have read in gCaptain, Shipping Watch headlines and on Splash247 and heard on ABC774 and ABC Australia the Houthis and Iran are taking aim of all ships that aren’t theirs or their friends ships and they have affectively dragged the entire shipping industry into this war which was started as Israel Hamas war and it has since spread out to other Middle Eastern countries. Most of the warships from elsewhere are doing their utmost to get your ships through the affected areas as safety as possible with the exception of at least 1 or 2 countries.
My country Australia are pushing our government to advocate for a permanent ceasefire. Our foreign affairs minister is in the Middle East at the moment. We have not as far as I am aware sent any of our warships.
Let me know if you think that we should get human rights defenders in to assist you and your fellow seafarers and mariners and captains.
Your right to go about your work safely is being breached by these people who are attacking your ships.
Keep vigilant and try and get video footage and photos of these attacks if it is safe to do so and send them to hrw.org and Amnesty International and my fellow human rights activists and I can add the your situation to our campaigns calendar
Don’t blame Izrael as you always do if the price of oil goes up as in 1973. Hamas statred this war on 07/10/2023 all Of Gaza & the West Bank danced on the streets & handed out sweets in Joyous mood after 1200 Israelis men women children Babes in arms were brutslly murdered by Hamas and helped on by ordinary Gazans.
What war? Bombing palestinian civilians is not war? Why has Israeli ground forces withdrawn from Northern gaza without rescuing one hostage!?
Bombing innocent civilians is not war ! Just genocide. 12000 babies bombed and Israel says hamas was carrying the baby hoping Israeli sniper won’t shoot! The whole world is notbstupid we don’t buy this propaganda! Israel aim is not hostages just land and expulsion of Palestinians. Bombing does it just fine. The amalek
With reports I have been reading in human rights emails and hearing on ABC774 and ABC National as well as ABC Melbourne and Victoria that is what they have been calling it. It started out as Hamas-Israel and other countries in the region became involved and America, UK, China and other EU countries are either escorting ships or involved in air strikes.
I don’t know what you would call it but from what I have read and heard it has expanded from the Hamas and Israel.
What do you think would be an appropriate alternative to calling it a war?
27,000 plus Palestinians bombed and killed by Israelis. No comparison there !
What about 800 000 Muslim killed in Sudan, Saudi Arabia, China, Afghanistan, Yemen, etc.
So those lives mean nothing?
israel is most definitely to blame. You cannot allow settlers to steal homes and land and treat your fellow citizens like they do. No one should have any respect for the zionists since they really have no respect for others.
I fully agree. Palistinians knew what was happening. What did they think was going to happen.
Was Israel going to stand by and forgive them. No way and why should they
It’s similar to economic blockade of Russia by West! Just houtis are enforcing the economic sanctions against Israel. Someone has to stand up and say maybe 12000 babies being bombed is not a self defence story!
This is starting to spread a lot further now, you me for one don’t care about religion , I am a man of God and I am not afraid to leave this world, this is my faith.
As it says in the bible it must happen, and WW3 has now started to gain momentum.
And I have not heard any politician or prime ministers or presidents call it WW3. I would not be surprised if it happens at some point if it’s not already. I think I have seen that in the Bible and I just can’t remember exactly where in the Holy Bible.i was raised as a Christian and I now identify as an Atheist
In the scriptures to do with the end times, 7 years of trials and tribulations, the rapture and then God destroys the earth. “The End Times will be signified by wars, floods, droughts and natural disasters” is the verse and I think but not 100% sure it’s in Revelations somewhere but I can’t remember exactly where I read it in the Holy Bible
I just hope for everyone’s sake and safety that this war in Gaza doesn’t become global and that the there is a permanent ceasefire.
Australia’s foreign affairs minister is in the region now advocating for a permanent ceasefire and has upped our humanitarian aid contribution by another $22 million on top of th $24 million this year.
Please Seafarers be vigilant and do your best to keep yourselves and each other safe