Maersk, MSC and BP halt Red Sea shipments after Houthi rebels attacks

Danish company A.P. Moller-Maersk halted the transit of its commercial ships following the attack on a vessel at the end of December—a pause that turned indefinite on Tuesday when Maersk issued a notice re-routing ships through the Cape of Good Hope in South Africa “until further notice.”

“An investigation into the incident is ongoing and we will continue to pause all cargo movement through the area while we further assess the constantly evolving situation,” Copenhagen-based Maersk said in a statement. 

The move lifted Maersk’s shares, which gained 6.4% and 5.1% on Tuesday and Wednesday, respectively. The company’s shares were up nearly 3% on Thursday at noon. 

Since the Houthis began stepping up attacks in December—bringing the tally to at least 23 now—several other companies have also taken measures to put alternate shipping paths in place and avoid the Red Sea and Gulf of Aden region.

Germany’s Hapag-Lloyd has said it will avoid the region until at least Jan. 9, leaving two of the world’s leading shipping companies to find alternate routes. 

Early to follow suit were the likes of Mediterranean Shipping Company (MSC) and CMA CGM, which began diverting shipments last month when attacks began.

The latter, a French shipping group, said it would therefore have to hike rates as much as 100% from Asia to the Mediterranean region from Jan. 15, CNBC reported Wednesday.

Collectively, the companies that have halted Red Sea trade for the time being account for upwards of 40% of the vessel market share.

“Due to this incident and to protect the lives and safety of our seafarers, until the Red Sea passage is safe, MSC ships will not transit the Suez Canal Eastbound and Westbound,” MSC said in a…