Two of the world’s oldest shipping firms, MSC from Switzerland and Maersk from Denmark, along with CMA CGM of France and Hapag-Lloyd, a Chilean-German alliance, announced suspensions of routes in the Red Sea following a series of attacks attributed to Houthi rebels linked to Yemen and, by some accounts, allied with Hamas. These four companies collectively hold more than 40 percent of global market share, underscoring the scale of disruption across major trade corridors.
Just as the Christmas season begins, this move threatens freight traffic in a zone that includes the Suez Canal—the critical passage that connects the Mediterranean with the Red Sea. The canal handles more than 50 ships daily, making it a linchpin in global goods trade, a fact emphasized by Hapag-Lloyd in its assessments of the route’s importance.
British Defense Secretary Grant Shapps described the recent missile and drone activity as a direct threat to international trade and maritime security in the Red Sea region, a comment he shared on social media through the merchant fleet channel.
Following warnings from the Houthis about attacks on ships sailing near the Gulf, the United Kingdom announced the deployment of the HMS Diamond to the Gulf region later in November to address growing concerns about maritime trade security in waters adjacent to Yemen, amid the broader Israel-Hamas conflict context in the area.
Attack on shipping lines
Over recent weeks, multiple missiles and unmanned aerial vehicles have been launched, with naval patrols by American and French warships signaling ongoing monitoring of the area. Despite those patrols, the intensity of attacks rose toward the week’s end and began to affect major commercial players directly.
MSC Palatium III, a container vessel, was reported to have been struck on a Friday. While damage was described as limited and the crew unharmed, MSC decided not to sail the vessel through the Suez Canal in either an eastward or westward direction until it was judged safe to traverse the Red Sea, prioritizing the life and safety of its personnel.
The Maersk fleet faced a similar incident on Friday, prompting comparable caution as its ships transit through the strategically vital Bosphorus and Bab al-Mandab corridors. AFP reported that the Bosphorus crossing has been temporarily halted to further notice, and Hapag-Lloyd noted a similar delay as a fire incident followed an unidentified object strike on one of its vessels. These events have led to heightened caution across multiple shipping lanes.
CMA CGM Group issued a strong statement expressing deep concern over the recent assaults on commercial ships in the Red Sea area. In response, the group described a phased tightening of precautionary measures intended to safeguard ships and crew navigating these waters. The company indicated that all container ships scheduled to pass through the Red Sea would be redirected to safer areas and instructed to pause journeys in secure waters until further notice. The decision reflected a broad strategy to preserve safety in a region facing escalating security risks.
Routing choices through Africa
One alternative for vessels wishing to avoid the Suez Canal and the Cape of Good Hope is to traverse the Indian Ocean and skirt along the African coastline toward Europe. This route, though longer, has been adopted by MSC and other carriers as a contingency. The additional distance translates into longer journey times and higher costs, yet it remains a preferred option to ensure safety when the Red Sea corridor is deemed too hazardous. Shifts in routing can have cascading effects on schedules for ships that would otherwise pass through Suez for a few days of transit, impacting customers and global supply chains.
MSC and Maersk stand as the world’s leading container operators by market presence, together commanding about a quarter of the global sector according to industry trackers. CMA CGM sits in a close third, with Cosco following, and Hapag-Lloyd ranks fifth in market share. The distribution signals that any disruption in the Red Sea ripples across major players and entire continents, influencing global logistics and trade flows.