Despite a ceasefire in Gaza and assurances from Yemen's Houthi forces to limit attacks, the Red Sea remains a high-risk zone for shipping operations, according to Abdulkareem Al Masabi, CEO of Abu Dhabi National Oil Company's (Adnoc) logistics and shipping division.
The fragile truce and recent attacks have left shipping companies wary of resuming operations in the area. Since November 2023, the Houthis have carried out over 100 attacks on vessels, prompting most shipping companies to reroute their cargo through the Cape of Good Hope, a significantly longer journey bypassing the Suez Canal.
“As we speak today, we cannot say it’s almost completely safe, nor can we approve a full return of our fleet to the Red Sea. The safety of our people comes first, and we cannot risk sending them into an area where there is still a level of uncertainty,” Al Masabi told Reuters.
Ongoing Caution Among Shipping Giants
Danish shipping leader Maersk announced on Friday its continued preference for the Cape of Good Hope route until safety in the Red Sea and the Gulf of Aden is assured over the long term.
The Houthis have stated they will limit attacks on commercial vessels linked to Israel if the Gaza ceasefire holds. However, they imposed conditions for halting attacks on US- or UK-linked shipping, leaving shipping companies and insurers apprehensive.
Insurance sources noted that while the ceasefire is a positive development, uncertainties surrounding Houthi actions and enforcement mechanisms have deterred a full return to Red Sea operations.
The prolonged use of the Cape of Good Hope route comes with increased costs and transit times for shipping companies but is seen as a necessary trade-off for the safety of seafarers, cargo, and vessels.
For now, shipping executives are monitoring the situation closely, with many choosing caution over convenience until the region demonstrates consistent stability.
