Attacks in The Red Sea threaten international shipping and trade

Lesetid: 2 min

On January 4th, the World Shipping Council, the International Chamber of Shipping, and BIMCO issued a joint statement thanking the states that have collectively condemned the ongoing attacks on ships in the Red Sea and the illegal detention of vessels and crew. The USA, Australia, Bahrain, Belgium, Canada, Denmark, Germany, Italy, Japan, the Netherlands, New Zealand, and the United Kingdom have unanimously declared that these attacks, which directly threaten the freedom of navigation essential for world trade, are unacceptable and illegal.

The World Shipping Council, the International Chamber of Shipping, and BIMCO urge all nations and international organizations to take immediate action to protect seafarers and global trade in the Red Sea. They are also calling for pressure to be applied on the attackers to ensure an immediate halt to these attacks. You can read the statement here.

The UN Security Council has also called for a halt to the attacks on international shipping in the Red Sea. ea. The members stated that these attacks are illegal and pose a threat to regional stability, freedom of navigation, and global food supplies.

What are the attacks in the Red Sea?

Since November, there have been a series of attacks on ships in the Red Sea. The Houthi rebel group has carried out more than 20 attacks on commercial ships in the area using missiles, drones, speedboats, and helicopters. The attacks are intended to disrupt international trade and thereby put pressure on Israel to stop the warfare in Gaza.

How do the attacks affect shipping and global trade?

The attacks have led many shipping companies to choose to sail around Africa instead of through the Red Sea, adding more than ten days to the journey. This has resulted in a significant increase in freight costs, in addition to the cost of delay incurred by the seller, supplier, and end-user. Freight costs and associated costs are expected to continue to rise as long as traffic in the Red Sea is restricted.

Kvale is ready to assist any company affected by the attacks in the Red Sea.