Maersk Diverts 20 Ships From Red Sea as Other Carries Invoke Force Majeure
Maersk confirmed after pausing all of its containerships near the Red Sea it has determined to reroute approximately 20 vessels due to what it calls the “alarming” attacks and the “significant threat to the safety and security of seafarers.” The world’s second-largest container shipping company follows a growing list of shipping companies including container carriers, oil tankers, LNG and LPG carriers, and car transports all reporting that they have begun to reroute vessels despite the U.S. announcement yesterday of a coalition task force.
The situation in the area around Yemen and the Red Sea appears relatively stable today after a series of attacks over the past few days. UK Trade Organizations received reports of one or two possible approaches by small boats today, December 19, but the crews did not see weapons and stated that the small boats withdrew. There are no reports of drone or missile attacks.
A spokesman for UK Prime Minister Rishi Sunak confirmed to Reuters that the UK is part of the task force and France announced its participation, but the UK said other than HMS Diamond it does not plan at this time to send additional vessels to the region. They highlighted that the U.S. has three warships now in the area while telling Reuters that the task force would have considerable capacity to deter future attacks and protect commercial shipping.
“We are pleased to see global governments reacting promptly,” Maersk said in its statement indicating that it is hopeful to stop the rerouting “in the near future,” but saying the timing for a resumption of service through the Red Sea “remains difficult to determine.”
Maersk reports that it had nearly 20 ships holding north and south of the Suez Canal and east of the Gulf of Aden. All will now be rerouted around Africa via the Cape of Good Hope. The company reiterated that it remains “deeply concerned about the situation,” and will consider its next steps. They are planning a case-by-case assessment for future sailings, which could include diversions via the Cape of Good Hope or further contingency measures.
Asian carriers were also among the companies announcing overnight that they were altering their sailing plans. HMM, Evergreen, Wan Hai, and Yang Ming all reported plans to suspend sailing through the Red Sea. They followed the lead of the world’s largest container carriers, including MSC, Hapag-Lloyd, and CMA CGM which all reported similar actions. Both Hapag and CMA CGM cited clauses in their Bill of Lading / Sea Waybill Terms and Conditions and invoked Force Majeure to divert their ships. Hapag is listing as of December 19 a total of 54 sailings stretching into 2024 that will divert around the Cape of Good Hope while reporting it still has five vessels "drifting" at points nears the Red Sea and Suez Canal.
Analysts highlight that all the planned diversions will require additional capacity for the carriers to maintain service. Lars Jensen, chief executive of Vespucci Maritime, estimated for Lloyd’s List that the diversions would require up to 1.7 million TEU and involve five to six percent of the sector’s capacity helping to reduce the current overcapacity for containerships.
Norway-based vehicle transport company Wallenius Wilhelmsen also cited the “deteriorating security situation,” reporting that it will reroute all vessels planned for Red Sea transits. They said several vessels have been successfully diverted warning shippers that it will add between one and two weeks to the duration of the voyage.
MSC and CMA CGM Suspend Red Sea Transits, Joining Hapag and Maersk
The security situation in the Red Sea is continuing to decline, prompting MSC and CMA CGM to announce that they have suspended all sailings in the region. The announcement follows similar alerts from Maersk and Hapag-Lloyd on Friday. The actions by the world’s largest container shipping companies come as the naval forces of the U.S. and UK, as well as other allies including Egypt, have all reportedly taken down drones launched from the Houthi-controlled regions of Yemen.
Saying that “The situation is further deteriorating and concern of safety is increasing,” CMA issued a statement today, December 16 reporting it is implementing preventive measures for navigation in the Red Sea.
“We have decided to instruct all CMA CGM containerships in the area that are scheduled to pass through the Red Sea to reach safe areas and pause their journey in safe waters with immediate effect until further notice,” CMA CGM reports. The French carrier has not said what it will do with the cargo, but it follows a similar decision by Maersk which paused Red Sea sailings a day after one of its ships was attacked. Hapag-Lloyd also said yesterday it was pausing all container ship traffic through the Red Sea until Monday, reporting “Then we will decide for the period thereafter.”
On Friday, one of Hapag-Lloyd’s large containerships was ordered to sail toward Yemen. When it ignored the command, it was struck by a missile that caused some damage and a small fire. The crew was able to extinguish the fire and the vessel continued its trip leaving the danger zone.
MSC in its statement is now also confirming that its vessel the MSC Palatium III was attacked and suffered limited fire damage on Friday. The USS Mason reported going to the assistance of the containership but said the vessel later advised it did not require additional assistance. MSC reported today that the vessel is being taken out of service. A recent AIS signal shows the ship traveled west in the Gulf of Aden and is now stopped in Djibouti.
“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,” the company wrote in a Customer Advisory. “Already now, some services will be rerouted to go via the Cape of Good Hope instead.”
The decision to suspend sailings through the Red Sea comes as the security situation in the area continues to deteriorate. Security consultants and the international alliance in the region are all confirming an escalation in the attacks coming from Houthi militants.
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