Red Sea situation still dangerous — Hapag-Lloyd

The German container line plans to conduct a next round of review tomorrow to consider whether to resume transits via the Suez Canal, a company spokesperson tells ENGINE. 

PHOTO: Hapag-Lloyd container ship in Singapore. Hapag-Lloyd

Hapag-Lloyd's crisis committee was in session yesterday to deliberate on whether the shipping firm should resume sailing on the Red Sea, the spokesperson said.

“At the moment we still consider the situation too dangerous to pass the Red Sea and will continue to re-route via the Cape of Good Hope,” the spokesperson said, adding, “We continuously assess the situation and plan a next review tomorrow.” 

On 18 December, Hapag-Lloyd announced that it would start diverting vessels around Africa. Tensions in the Red Sea tensions due to the increase in attacks by the Houthi militia prompted the company, among other shipping firms, to reroute. 

The decision has proved to be a costly one as it will cost Hapag-Lloyd “a double-digit amount of million USD only for bunker fuel” in the two weeks between 18-31 December, a company representative told ENGINE last week. 

By Manjula Nair  

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