Shell has suspended all shipments through the Red Sea indefinitely amid the ongoing Houthi attacks from Yemen on commercial vessels on the key global trade route.
Shell is the latest firm in a long line of companies, which decided to steer clear of the Red Sea shipping route in response to rising Houthi vessel attacks.
Media reports indicate that the UK-headquartered energy giant has hit the breaks on any shipments going through this shipping lane indefinitely.
With maritime trade in peril in the Red Sea region due to safety risks, many shipping players are suspending their transits even though this is perceived to be one of the most heavily traveled waterways in the world. According to the Wall Street Journal (WSJ), Shell has become the most recent company, which decided to halt all Red Sea shipments indefinitely in the face of the dangers that lie in wait, as the Houthis keep their barrage of attacks on vessels passing through the Red Sea, spurring fears about the possibility of a wider conflict breaking out across the Middle East.
The WSJ’s report indicates that the UK oil major made the move to suspend its Red Sea transits after one of its chartered tankers, which was carrying Indian jet fuel, caught the Houthis’ attention last month, becoming another notch on the growing list of vessels attacked by the group via a drone and harassed by small boats. Shell manages a fleet of 28 vessels that deliver energy around the world, including about 20 LNG carriers.
The Houthis, which are allegedly doing Iran’s bidding, control Yemen and have managed to wreak havoc on the Red Sea trade, forcing many international maritime players to divert their ships around the Cape of Good Hope on the southern tip of Africa. The security woes in the Red Sea have led to a drop in tanker transits, as these vessels are now diverting from these trade lanes alongside container ships, upping the shipping costs ante.
World Maritime News report that many fear that a further disruption to maritime trade activities along with elevated oil prices could undermine the efforts to combat inflation, which has become a household name due to the COVID-19 pandemic and the energy crisis. Shell’s decision to avoid the Red Sea comes after
BP made a similar move last month, followed by Qatar Energy, which did the same this week.
