Global maritime trade sails into geopolitical storm

PARIS ( AFP) – International maritime trade has hit stormy waters as attacks by Yemen’s Houthi rebels on ships in the Red Sea has reduced the availability of ships, causing freight rates to surge.

- 

Most large international shipping companies have decided to reroute trading to avoid the Red Sea and Suez Canal through which 12 percent of world trade usually passes.

The Houthis say the strikes are in solidarity with Palestinians in war-ravaged Gaza, which Israel has bombarded relentlessly for three months, in what it says is a campaign to destroy militant group Hamas.

Danish shipping giant Maersk said Friday that it would divert all vessels around Africa instead of using the Red Sea and Suez Canal for the “foreseeable future” after Yemeni rebels attacked its merchant ships.

Vessels are circumnavigating Africa via the Cape of Good Hope, which extends the journey between Asia and Europe by 10 to 20 days on average, according to Arthur Barillas, general manager of Ovrsea, a freight organiser.

Shipping companies have already announced significant price increases to cover the costs associated with the detour.