BP latest firm to pause Red Sea shipments as U.S. says it will form international coalition to curb Houthi attacks
Publishing timestamp: 2023-12-18 12:11:43
Summary
BP has decided to pause all shipments through the Red Sea following a series of attacks by Houthi militants from Yemen. Other shipping giants, including MSC, Hapag-Lloyd, CMA CGM, and Maersk, have also suspended travel through the Red Sea. The U.S. has pledged an international effort to combat the situation. The attacks have raised concerns about global supply chains and could have significant market implications. The shipping industry is facing geopolitical tensions and uncertainty surrounding how long the situation will last. The disruption could lead to longer lead times for goods or increased costs for faster travel. However, carriers with surplus capacity may benefit from the oversupply in the market. The Cape of Good Hope route is being used as an alternative, reducing the effective capacity of the Asia-Europe trip. This could result in higher freight rates and negotiations for long-term contracts in the coming months.
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