Why have shipping companies suspended passage through the Red Sea, and how has COSCO dealt a knockout blow to them?
Several major shipping companies have announced the suspension of passage through the Red Sea, despite assurances from Sana’a to all these companies that their operations only target ships heading to occupied Palestine or those associated with Israeli companies or businessmen.
Follow ups – Al-Khabar Al-Yemeni:
The US’s desire, fueled by the Zionist lobby, to portray Yemeni operations against ships heading to the ports of occupied Palestine as being against international navigation in order to rally nations within the American alliance to protect Israeli ships is largely responsible for these companies’ decision to distance themselves from the Red Sea. However, there are other reasons related to these companies’ greed and their attempt to profit from the crisis by driving up the price of their stock because changing the route means increasing shipping costs and, consequently, increasing profits.
According to the American agency Bloomberg, shipping companies received a strong boost in their stock prices as a result of announcing a hike in shipping rates due to the change in route via the Cape of Good Hope. This is what these companies were seeking to compensate for their accumulated losses since the congestion of containers in ports during the Corona virus period.
The announcement by the Chinese company COSCO to suspend shipping operations to Israel and redirect its ships in the Red Sea has frustrated these companies and proven that this vital and fast passage is safe for all ships except those heading to and from the ports of occupied Palestine. Additionally, the company will gain new customers because its shipping prices are less expensive and faster.
This decision led to a decline in the shares of Maersk by 8.4% and Hapag-Lloyd by 11%. Consequently, both companies issued denials that they had signed an agreement with Yemen for passage and claimed that the passage through the Red Sea is unsafe.
Shares of the Israeli company ZIM also declined by 14%, and Israeli media outlets have speculated that this will have an impact on the Israeli company as it will have to increase the number of ships to meet the demand in the enemy entity, and the increase in shipping prices will only apply to Israeli ships, which are completely banned from the Red Sea regardless of their destination until the aggression on Gaza is halted.