Shipping firms chart return to Red Sea amid US military push

CAIRO: Global shipping firms, including Denmark-based Maersk and Switzerland-based MSC Mediterranean Shipping Co, are looking to resume operations in the Red Sea and the Gulf of Aden after the United Kingdom Maritime Trade Operations (UKMTO) and the Operation Prosperity Guardian (OPG) enhanced safety around the Suez Canal.

"There was no damage to ships in the area or reported injuries," the Pentagon's Central Command said on Wednesday in a social media post. There were also three anti-ship ballistic missile and two land-attack missile attacks over 10 hours.

On December 27, US military forces announced they had shot down more than 12 drone missiles launched by Yemen-based Houthi rebels in the Red Sea.

While Maersk, on December 25, said that it was preparing to resume shipping operations in the Red Sea, MSC Mediterranean is expected to hold a high-level meeting on December 27 to decide whether to restart operations around the Suez Canal or not.

The OPG, a US-led military coalition of predominantly Western nations, was formed a few days ago to respond to the attacks by Houthi militants, backed by Iran, on shipping in the Red Sea.

Other major shipping lines like CMA CGM, and Hapag-Lloyd have still not announced resumption of services.

However, industry experts expect that with the deployment of the OPG, global shipping majors are likely to resume services soon.

Similarly, a senior official from the Ministry of Ports, Shipping, and Waterways said that following the deployment of United Kingdom Maritime Trade Operations and the OPG in the Red Sea, shipping lines are likely to restore operations through the Suez Canal soon.

Arindam Bagchi, the spokesperson for the Ministry of External Affairs, said that India is closely observing the ongoing developments in the region and actively participating in international initiatives aimed at ensuring the freedom of shipping, and addressing concerns such as piracy.

Over the past month, Houthis have mounted more than 100 attacks on around 20 ships. The Houthis have also hijacked a Japanese-operated ship, which they continue to hold off the coast of Yemen.

Following the December 15 attack, shipping majors AP Moller-Maersk, MSC, CMA CGM, and Hapag-Lloyd temporarily suspended their Red Sea operations. The four companies cumulatively account for 53 percent of global maritime trade, according to industry estimates.

According to estimates, around 12 percent of global trade passes through the 193-km long canal, which is the shortest sea link between Asia and Europe.

India's exports, via the Suez Canal, include food products, apparel, and electronics, among others to Europe, but its imports include the vital shipments of crude, analysts pointed out.

India's shipments, like low-end engineering products, steel, and commodities such as rice and garments, stand to be affected.