CAUTION
Executives from shipping, insurance and retail industries told Reuters last week that they were not ready to return to the Red Sea trade route because of uncertainty over whether the Houthis would continue to attack shipping.
A spokesperson for Germany container shipping group Hapag-Lloyd said on Monday the company was still monitoring the situation, adding: “We will return to the Red Sea when it is safe to do so.”
The Houthis have attacked ships in recent months based on outdated information, Jakob Larsen, chief safety & security officer with shipping association BIMCO, said.
“In recent months, they have made several false claims about successful attacks, thereby slightly undermining their credibility,” he said on Monday.
“Assuming the ceasefire holds and the US also refrains from using force, shipping companies are expected to gradually resume operations through the Red Sea.”
Insurers were also were waiting for test voyages to determine if war risk premiums would ease, market sources said on Monday, asking not to be named.
Higher war risk insurance premiums, paid when vessels sail through the Red Sea, have meant additional costs of hundreds of thousands of dollars for a seven-day voyage for any ships still sailing through the area.
The Houthis hold the Bahamas-flagged Galaxy Leader and its 25 crew members, which was seized by the militia’s commandos in international waters in November 2023.
“The Filipinos, Mexicans, Romanians, Bulgarians, and Ukrainian who were on board are desperate to leave Yemen,” the vessel’s owner Galaxy Maritime Ltd and manager STAMCO Ship Management said on Monday. “Some have been hospitalised with malaria and one can only guess at their mental state.”
