Rising international trade tensions are tied to the ongoing conflict in the Middle East. The Iranian warship Alborz has fully entered the Red Sea, intensifying concerns about the main maritime corridor linking China and Europe through the Suez Canal. Iran’s Tasnim news agency offered no details on Alborz’s mission, but Tehran has ships operating in the region since 2009 to help safeguard sea lanes and curb piracy. Yemen’s Iran-backed Houthi forces have targeted ships in the Red Sea, aligning with Hamas in its war with Israel.
The presence of Iranian vessels along this critical route introduces greater uncertainty. Many leading shipping firms have begun avoiding the area, rerouting vessels to the longer, costlier path around Africa’s Cape of Good Hope instead of passing through the Suez Canal, which handles roughly 12% of global trade. The detour adds about 9,000 kilometers and roughly 15 days to typical voyage times, while freight costs rise by around 25%. These shifts threaten the timely supply of technology and finished goods from China and across Asia to Europe. Iran’s Press TV notes that alongside Alborz, the support ship Bushehr has also been spotted in the region.
attack this weekend
Houthi militants launched missiles and small-boat assaults against a Maersk container ship this weekend, prompting the suspension of all Red Sea sailings for 48 hours. US military helicopters conducted countermeasures, repelling the attack and recording the death of ten Houthi fighters.
Maersk confirmed that the vessel Maersk Hangzhou, capable of carrying 14,000 containers, was on a voyage from Singapore to the Port of Suez when attacked near Bab al-Mandeb Strait. The incident caused no injuries among the crew. After the first attack, four additional ships approached and opened fire in an attempt to board. A nearby naval helicopter was deployed, and with the ship’s security team, the boarding attempt was repelled. Maersk is assessing regional safety and considering route adjustments to protect cargo and crew.
Despite the security risks, the company remains focused on planning voyages through the Suez Canal. The Danish operator expects to move more than 30 container ships through the Suez Canal and the Red Sea in the near term, though some vessels will be diverted to safer routes or alternate schedules as conditions allow.
Threat to trade routes
The Houthi movement, which controls portions of Yemen amid a prolonged conflict, began attacking international vessels crossing the Red Sea in November as a response to Israeli actions in Gaza. Major global operators including Maersk and Hapag-Lloyd partially paused use of the Red Sea and Suez Canal routes last month, opting for a longer journey around Africa via the Cape of Good Hope. By December 24, Maersk signaled readiness to return to the Red Sea with the launch of a US-led operation to safeguard ships in the area. (Source: industry reports)
The operators underscore that crew, ship, and cargo safety remains the top priority, guiding voyage planning on a ship-by-ship basis. Some vessels will navigate via the Suez while others will take a longer circuit around Africa. A Reuters analysis indicated that Maersk suspended plans for at least 17 ships to pass through the Red Sea as part of this reassessment. (Source: Reuters)
Hapag-Lloyd announced that it would continue diverting ships away from the Suez and Red Sea for security reasons, with further evaluations planned in the future. The Suez Canal serves roughly one third of the world’s container ship cargo, and rerouting vessels around southern Africa is projected to raise fuel costs by as much as one million dollars per round trip between Asia and Northern Europe.