ENERGY: Shipping Firms Show Reluctance to Red Sea Passage

Updates from shipping firms show continued reluctance to return to Red Sea passage following Houthi communications this week that it would not attack non-Israel vessels, although early signs of increasing interest have emerged.

• French container line CMA CGM confirmed yesterday that it will send a containership “CMA CGM COLUMBIA” through the Red Sea on an ad-hoc basis, with one passage scheduled today.
• Meanwhile, Mitsui CEO explained at Davos that the company will not be re-opening the Suez route imminently, with a decision not expected for several weeks or even months.
• MSC will be sending its vessels around Africa until further notice.
• Tanker owner Torm is considering “when it may be relevant to resume transits through the southern part of the Red Sea,” according to a statement with Bloomberg.
• Hafnia, Maersk and Torm are monitoring the situation, all citing safety concerns.
• The Iran-backed Houthis promised to stop attacking ships in the Red Sea, except those flagged in Israel, following the Israel-Hamas ceasefire deal on Jan. 19
• In a sign of de-escalation yesterday, Houthi rebels released the crew of the “GALAXY LEADER” RoRo vessel initially seized by the group in November 2023.
• Meanwhile, the Trump administration’s re-designation of the Houthi rebel group as a ‘Foreign Terrorist Organization’ will impose harsher economic penalties on the group and could add to tensions.