Denmark's Maersk considers route options following an attack on a vessel

Denmark’s shipping giant, Maersk, is set to decide on Tuesday, 2 January 2024, regarding the navigation of its vessels through the Suez Canal via the Red Sea. This comes in the aftermath of a weekend attack on one of its ships by Yemen-based Houthi militants, as confirmed by a company spokesperson.

In response to the attempted boarding of the Maersk Hangzhou, Maersk temporarily halted all Red Sea sailings for 48 hours. The incident, involving U.S. military helicopters repelling the attack and neutralizing 10 assailants, prompted a reassessment of the shipping routes.

With more than 30 container vessels originally scheduled to cross the Suez Canal via the Red Sea, an advisory on Monday, 1 January 2024, revealed that 17 voyages were currently on hold. A decision on the course of action will be finalized on Tuesday, 2 January 2024, according to the company spokesperson.

Despite sustaining damage from an unknown object during the attack, the Maersk Hangzhou continued its journey, now positioned near the Suez Canal, according to LSEG shipping data.

The Iranian-backed Houthi militants, operating in parts of war-torn Yemen, have been targeting international shipping since November 2023, in support of the Palestinian group Hamas. The latter is engaged in conflict with Israel in the Gaza Strip.

In response to the escalating threats, major shipping groups, including Maersk and Hapag-Lloyd, shifted to longer routes around South Africa via the Cape of Good Hope in December 2023. However, a U.S.-led military operation was deployed to safeguard ships, and Maersk announced on 24 December 2023, that it would resume using the Red Sea.

Hapag-Lloyd, Maersk’s rival, also previously opted to avoid the Red Sea but is expected to provide an update on its plans on Tuesday, 2 January 2023.

Maersk’s alliance partner, Mediterranean Shipping Company (MSC), continues to divert its vessels via the Cape of Good Hope, as confirmed by Maersk.

The Suez Canal, a critical maritime artery, handles approximately one-third of the world’s container ship cargo. The decision to redirect ships around the southern tip of Africa is anticipated to result in additional fuel costs, estimated at up to $1 million for each round trip between Asia and Northern Europe.