Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Shipping giant Maersk prepares to resume operations in Red Sea

Published 12/24/2023, 02:35 PM
Updated 12/24/2023, 02:45 PM
© Reuters. FILE PHOTO: View of containers on the methanol-fueled container vessel Laura Maersk as it sits at anchor in harbour after an official naming ceremony in Copenhagen, Denmark, September 14, 2023. REUTERS/Tom Little/File Photo

WASHINGTON (Reuters) - Denmark's Maersk is preparing to resume shipping operations in the Red Sea and the Gulf of Aden, the company said on Sunday, citing the deployment of a U.S.-led military operation designed to ensure the safety of commerce in the area.

The shipping giant paused sending vessels through the Bab el-Mandeb strait earlier in December due to attacks against its ships. That rendered the Suez Canal, which is key to global commerce, unusable for most routes.

The United States said on Tuesday it was launching a multinational operation to protect commerce in the Red Sea from Iran-backed Yemeni militants, who have been firing drones and missiles at international vessels since last month in what they say is a response to Israel's war in Gaza.

"As of Sunday 24 December 2023, we have received confirmation that the previously announced multi-national security initiative Operation Prosperity Guardian (OPG) has now been set up and deployed to allow maritime commerce to pass through the Red Sea / Gulf of Aden and once again return to using the Suez Canal as a gateway between Asia and Europe," Masersk said in a statement on Sunday.

"With the OPG initiative in operation, we are preparing to allow for vessels to resume transit through the Red Sea both eastbound and westbound."

Maersk said it would release more details in coming days. But it said it could again resort to diverting ship traffic depending on how safety conditions evolved.

On Tuesday, Maersk said it was rerouting ships around Africa via the Cape of Good Hope. It said it would impose container surcharges for shipments from Asia to cover the extra costs associated with the longer journey.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Several other firms have stopped transiting the Red Sea on safety concerns in recent weeks, as has oil major BP (NYSE:BP).

Latest comments

Hou dunnit?
May as well paint a target on your back. US warships can't be everywhere all at the same time.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.