Shipping companies avoid Red Sea due to violence

Shipping companies are hesitant to return to the Red Sea due to ongoing violence in the area. Recently, President Trump criticized the Houthi attacks on commercial shipping in the region, stating they have hurt global trade and endangered lives. For over a year, many shipping lines have chosen to take a longer route around Africa rather than risk passing through the Red Sea. This alternative route adds approximately 3,500 nautical miles and an extra 10 days to their journey. Despite the longer distance, the industry has adapted and benefited from higher shipping rates since the Houthi attacks began in late 2023. Shipping executives indicate that a return to the Red Sea will depend on achieving a broader peace agreement in the Middle East or significantly defeating the Houthi militia, which has support from Iran. Vincent Clerc, CEO of Maersk, mentioned that without either of these outcomes, they will not resume operations in the Red Sea.