The German shipping company Hapag-Lloyd said that it will change the course of 25 of its ships until the end of this year to avoid sailing in the Red Sea.
A company spokesman told Reuters, “We will change the course of about 25 ships until the end of 2023, and other decisions will be made at the end of the year.”
The German company’s decision came after a series of attacks launched by the Ansar Allah Houthi group against ships that the group says are linked to Israel.
The group vowed to target ships owned or operated by Israeli companies, in solidarity with Palestine, and called on countries to withdraw their citizens working on the crews of these ships.
The spokesman explained that a ship belonging to the company was attacked near Yemen on December 15 on its way to Singapore.
In addition to Hapag-Lloyd, ships belonging to other operators, including competing companies Maersk and MSC, were also attacked.
The Houthi attacks on ships linked to Israel were the reason behind changing the course of ships from the Bab al-Mandab Strait to the Cape of Good Hope, which increases sailing for up to two weeks, according to the Suez Canal Authority.
The head of the Suez Canal Authority announced last Sunday that 55 ships had diverted their course through the Cape of Good Hope, instead of the Bab al-Mandab Strait, since last November 19, when the Houthis took control of a ship belonging to an Israeli businessman.
It is noteworthy that about 40% of global seaborne trade passes through the Bab al-Mandab Strait.
Sea freight rates and shipping company stocks have risen due to ships changing their routes, which means that a large portion of trade between East and West will incur more costs given that ships will have to sail around Africa via the Cape of Good Hope.
Sea freight prices to Israel from various Chinese ports rose to more than $2,300 per 40-foot container by December 12, from $1,975 at the end of last November.
Shipping routes around the Cape of Good Hope are much longer – about 7,000 nautical miles and 10-14 days – compared to the Suez Canal, and this route also incurs higher fuel costs.
Since the beginning of the war on the Gaza Strip, ocean transport rates from China to Israeli ports have increased by 46%.