By Charles Kennedy – Jan 20, 2025, 10:00 AM CST
- The Houthis have announced a limited halt to attacks on ships in the Red Sea, but major shipping companies remain cautious.
- Shipping giants are concerned about the long-term security situation in the region and are closely monitoring developments.
- The prolonged conflict and attacks had forced many ships to reroute, disrupting supply chains and increasing shipping costs.
Following the Israel-Gaza ceasefire, the Iran-aligned Houthis will limit attacks in the Red Sea to vessels linked with Israel, the Humanitarian Operations Coordination Center, through which the Houthis communicate with merchant shipping, has said.
“We affirm that, in the event of any aggression against the Republic of Yemen by the United States of America, the United Kingdom, or the usurping Israeli entity, the sanctions will be reinstated against the aggressor,” the center said in an email sent to shipping industry officials dated on January 19 and quoted by Reuters on Monday.
The Houthis will only target ships that are wholly or partially owned by Israeli individuals or entities, as well as Israel-flagged ships, the Houthis said, announcing a partial halt to the attacks in the Red Sea that have disrupted commercial shipping in the past year.
However, global shipping giants do not expect a quick return to Red Sea traffic.
“We will continue monitoring the situation in the Middle East closely and will return to the Red Sea and sailing through Bab el Mandeb when it is safe to do so,” A.P. Moller-Maersk A/S told Bloomberg in an emailed statement on Friday.
Last week, Israel and Hamas reached a Gaza ceasefire and hostage release deal following 15 months of war. During most of these months, the Houthis attacked commercial vessels passing through the Bab el Mandeb Strait and the Red Sea.
These attacks forced the global container and tanker shippers to re-route their journeys between Europe and Asia via the longer route around the southern tip of Africa.
The longer voyages via Africa have increased travel times, delayed goods delivery, disrupted supply chains, and raised shipping costs.
Apart from Maersk, another shipping giant, Hapag-Lloyd, also expects no imminent return to the Red Sea shipping lane.
“The agreement has only just been reached. We will closely analyze the latest developments and their impact on the security situation in the Red Sea,” a spokesperson for Hapag-Lloyd told Reuters on Thursday.
By Charles Kennedy for Oilprice.com
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