Yemeni Rebel Attacks Affect International Shipping
2023-12-20
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1The recent attacks on ships in and near the Red Sea by Yemen's Houthi rebels have affected some of the world's top shipping and oil companies.
2The threat has moved trade away from an important route for global trade.
3The change will likely cause delays and increase the prices of goods and energy.
4Both oil and European natural gas prices rose a little over market concerns about Houthi attacks.
5The group, which is supported by Iran, confirmed two new attacks Monday.
6They were the latest in a series of attacks targeting container ships and oil tankers passing through the narrow waterway that separates Yemen from East Africa.
7The waterway then leads north to the Red Sea and the Suez Canal.
8It is estimated that 10 percent of the world's trade passes through the canal.
9Energy supplies reach Europe and beyond on tankers.
10And food products like palm oil and grain are carried by container ships through the Suez Canal.
11"This is a problem for Europe. It's a problem for Asia," said John Stawpert.
12He is with the International Chamber of Shipping.
13The industry group represents 80 percent of the world's commercial shipping fleet.
14Stawpert noted that 40 percent of Asia-Europe trade normally takes the route through the Red Sea.
15Almost all goods that stores need for Christmas will have already arrived.
16But online orders could be delayed, experts said.
17That is because four of the world's five largest container shipping companies have suspended or rerouted movements from the Red Sea in recent days.
18MSC, Maersk, CMA CGM Group, and Hapag-Lloyd are shipping companies that move all consumer goods between Asia and Europe.
19Almost "all services will have to make this rerouting," said Simon Heaney, who is with Drewry, a shipping research group.
20Ships will have to go around South Africa's Cape of Good Hope instead.
21That will add at least a week of travel time, experts say.
22Depending on what companies decide to do, they could add more ships to make up for the longer trip.
23They could also travel faster, but that would use more fuel.
24Stawpert of the Shipping Chamber said he expects some price increases in the short term.
25But that depends on how long the security threat lasts.
26The Houthi military spokesman said Monday his group launched what he described as "naval aircraft" at the Cayman Islands-flagged ship Swan Atlantic.
27The boat is a chemical and oil products carrier.
28The group also attacked the Panama-flagged cargo ship MSC CLARA.
29He did not offer more details.
30Denmark-based ship operator Uni-Tankers said the Swan Atlantic was hit by an unknown object that started a small fire.
31Crew members put it out and all were reported to be safe, the company said.
32It received military aid and continued on its way.
33U.S., French, British and other warships already patrol the area, keeping the waterway open.
34Stawpert said countries' naval presence has increased and that should improve confidence in the shipping industry and somewhat ease the threat.
35Problems in Red Sea shipping could have far-reaching effects because they are happening at the same time ships are being restricted through the Panama Canal. The canal is a major trade route between Asia and the United States.
36Some companies had planned to reroute to the Red Sea to avoid delays at the Panama Canal caused by a lack of rainfall, experts said.
37With the Houthi attacks, companies taking measures to avoid risk will have to take the longer route around Africa.
38I'm Caty Weaver.
1The recent attacks on ships in and near the Red Sea by Yemen's Houthi rebels have affected some of the world's top shipping and oil companies. The threat has moved trade away from an important route for global trade. The change will likely cause delays and increase the prices of goods and energy. 2Both oil and European natural gas prices rose a little over market concerns about Houthi attacks. The group, which is supported by Iran, confirmed two new attacks Monday. They were the latest in a series of attacks targeting container ships and oil tankers passing through the narrow waterway that separates Yemen from East Africa. The waterway then leads north to the Red Sea and the Suez Canal. It is estimated that 10 percent of the world's trade passes through the canal. 3Energy supplies reach Europe and beyond on tankers. And food products like palm oil and grain are carried by container ships through the Suez Canal. 4"This is a problem for Europe. It's a problem for Asia," said John Stawpert. He is with the International Chamber of Shipping. The industry group represents 80 percent of the world's commercial shipping fleet. Stawpert noted that 40 percent of Asia-Europe trade normally takes the route through the Red Sea. 5Almost all goods that stores need for Christmas will have already arrived. But online orders could be delayed, experts said. That is because four of the world's five largest container shipping companies have suspended or rerouted movements from the Red Sea in recent days. 6MSC, Maersk, CMA CGM Group, and Hapag-Lloyd are shipping companies that move all consumer goods between Asia and Europe. Almost "all services will have to make this rerouting," said Simon Heaney, who is with Drewry, a shipping research group. 7Ships will have to go around South Africa's Cape of Good Hope instead. That will add at least a week of travel time, experts say. 8Depending on what companies decide to do, they could add more ships to make up for the longer trip. They could also travel faster, but that would use more fuel. 9Stawpert of the Shipping Chamber said he expects some price increases in the short term. But that depends on how long the security threat lasts. 10The Houthi military spokesman said Monday his group launched what he described as "naval aircraft" at the Cayman Islands-flagged ship Swan Atlantic. The boat is a chemical and oil products carrier. The group also attacked the Panama-flagged cargo ship MSC CLARA. He did not offer more details. 11Denmark-based ship operator Uni-Tankers said the Swan Atlantic was hit by an unknown object that started a small fire. Crew members put it out and all were reported to be safe, the company said. It received military aid and continued on its way. 12U.S., French, British and other warships already patrol the area, keeping the waterway open. Stawpert said countries' naval presence has increased and that should improve confidence in the shipping industry and somewhat ease the threat. 13Problems in Red Sea shipping could have far-reaching effects because they are happening at the same time ships are being restricted through the Panama Canal. The canal is a major trade route between Asia and the United States. 14Some companies had planned to reroute to the Red Sea to avoid delays at the Panama Canal caused by a lack of rainfall, experts said. 15With the Houthi attacks, companies taking measures to avoid risk will have to take the longer route around Africa. 16I'm Caty Weaver. 17Dan Novak adapted this story for VOA Learning English based on reporting from The Associated Press. 18________________________________________ 19Words in This Story 20route - n. a way to get from one place to another 21commercial -adj. related to business or trade 22fleet -n. a group of vehicles, especially ships, controlled by one company or a country 23cargo -n. a sellable good that is transported by vehicle 24patrol -v. to go through an area to make sure that it is safe and free from risks