Following a series of attacks on ships in the Red Sea and the Gulf of Aden by Iranian-backed Houthi militants based in Yemen, shipping giants Maersk and Hapag-Lloyd have rerouted their vessels, opting for the longer Cape of Good Hope route in South Africa.

According to CNBC, Maersk, Hapag-Lloyd, and other container shipping firms have previously announced a temporary halt in traveling through the Red Sea and the Bab el-Mandeb Strait in the Middle East due to fears of Houthi attacks.

The Red Sea provides a critical link between Asia and Europe via the Suez Canal in Egypt, while the Gulf of Aden runs along the southern coast of Yemen. CNBC reported that around 30% of global container trade passes through the Suez Canal.

(Photo : SERGEI GAPON/AFP via Getty Images)
Containers of Danish shipping and logistics company Maersk are seen in Copenhagen, Denmark, on September 14, 2023.

Maersk, Hapag-Lloyd Reroute Ships to Cape of Good Hope

Hapag-Lloyd on Monday decided to reroute its ships to the Cape of Good Hope due to safety concerns following an attack on its vessel, the Al Jasrah, in the Red Sea by Houthi militants.

On Tuesday, Maersk also acknowledged the increased risks in the region. Thus, it also opted to travel via the Cape of Good Hope route. Oil giant British Petroleum (BP) has also taken extra precautions against the escalating attacks by Houthi rebels supporting Hamas.

On Monday, BP also temporarily halted all its tanker transits via the Red Sea, citing "the deteriorating security situation for shipping" in the region. The company noted that the safety of its personnel is its top priority.

"We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region," the company said.

READ ALSO: Shipping Giants Maersk and Hapag-Lloyd Suspend Red Sea Travel After Houthi Rebel Attacks  

Houthi Attack on Major Trade Route Could Impact Global Trade

The situation has raised concerns about its potential impact on global trade, particularly in the flow of consumer goods such as oil and food. Shipping companies seeking alternative routes will likely face longer journeys, resulting in increased transportation costs and delays in cargo deliveries.

The European Union has strongly condemned the missile and drone attacks by the Houthis against commercial ships, saying these repeated attacks endanger international navigation and the lives of members of different crews.  

The decision to reroute vessels and suspend transits through the Red Sea reflects a broader concern about the security of maritime routes in the region. Recent incidents, including an attack near the Bab el-Mandab Strait reported by a British naval authority, have raised alarms. 

READ MORE: Trading on Terror? Israel Investigates Claims Some Traders Knew Hamas' Attack Plan and Profited off It