What is the impact of the Red Sea incident on international shipping business
Following the grounding and blockage of the Suez Canal in 2021, the Asia Europe shipping hub has once again faced challenges.
Recently, there have been frequent attacks on cargo ships in the waters near the Red Sea. Several shipping giants, including MSC, Maersk, CMA CGM, and Hapag Lloyd, have announced the suspension of Red Sea navigation. Some shipping companies have notified the cessation of cargo loading and booking of new cabins.
On December 18th, Pengpai News exclusively learned from freight forwarding companies that due to the impact of the international situation, COSCO Shipping, OOCL, and EMC have verbally notified the suspension of the loading of goods on the Red Sea route. ONE Ocean Network Shipping has also verbally notified the suspension of cargo loading on the Red Sea route. The above messages have not been formally communicated and are all verbal notifications. It is worth noting that Dafei Shipping, COSCO Shipping, Evergreen Shipping, and Dongfang Overseas have previously formed an alliance through cooperation.
In addition, the freight forwarder also stated that Mediterranean Shipping (MSC) is currently only notifying to detour around the southern tip of Africa's Cape of Good Hope and has not suspended the loading of goods in related directions. Hapag Lloyd has notified that, except for VIP guests, bookings for Middle East, Red Sea, and Mediterranean routes on the west and east coasts are temporarily suspended and awaiting further notice.
According to CCTV news, since the outbreak of the new round of Palestinian Israeli conflict on October 7th, the Yemeni Houthi armed forces have repeatedly claimed to launch strikes on targets within Israel. The Houthi armed forces have used missiles and drones to attack targets in the Red Sea area multiple times. Starting from mid November, the Hussai armed forces expanded their range of attacks on Israeli targets and began striking ships related to Israel in the Red Sea, continuously escalating related threats. Recently, multiple cargo ships have been attacked in the Red Sea, the Strait of Mandela, and nearby waters.
Many industry insiders told reporters from The Paper that the current security situation in the Red Sea and surrounding waters is unstable, and the suspension of flights and operations may become a major trend.
Or influenced by the above factors, as of the close on December 18th, the shipping sector led the two markets to rise, driving the transportation sector to rise at the forefront. Among them, Longjiang Transportation (601188), Longzhou Shares (002682), Zhongchuang Logistics (603967), Shanghai Yashi (603329), Ningbo COSCO Shipping (601022) and others rose the limit.