Red Sea Attacks – Maersk/BP pausing shipments

There have recently been many stories in the media about shipping firms pausing Red Sea journeys over attacks. For example, the Danish shipping company Maersk has said it is pausing all journeys through the Red Sea. The decision comes after a spate of attacks on vessels launched from a part of Yemen controlled by the Houthis – and Iran-backed rebel movement.

Additionally, BP has paused all Red Sea shipments after rebel attacks, and there are fears of higher oil prices after Red Sea attacks are predicted and the effect on global trade.

The cost of shipping raw materials or finished products via maritime routes might be affected by decisions made months or years earlier, such as long-term contracts, fuel pricing agreements, or investments in shipping infrastructure. The maritime industry often operates on extended timelines due to the nature of shipping contracts and the time it takes for vessels to move across oceans. Therefore, pricing dynamics in the maritime sector may not always align with immediate events but could be linked to earlier decisions and circumstances.