British oil and gas company Shell, as well as Japanese shipping companies NYK Line, Mitsui OSK Line, and K Line, have all suspended Red Sea operations amid continued Houthi attacks against commercial shipping vessels and increased regional tensions.
This comes as A.P. Moller–Maersk, Mediterranean Shipping Company (MSC), CMA CGM, Hapag-Lloyd, Evergreen Shipping, and BP Shipping also suspended operations over the past month.
The Red Sea connects to the Suez Canal, which means that these companies will need to reroute around Africa to reach Europe. This not only extends transit times by nearly two weeks, but also increase freight rates, which ultimately impact prices for the end consumer.