Maersk Suspends Red Sea Transit, Affects India's Key Trade Route

Hyderabad: Maersk, one of the world's largest shipping companies, announced on Sunday the suspension of its vessels' passage through the Red Sea strait for 48 hours, responding to an attack by Yemeni rebels on one of its merchant ships. This comes after a similar suspension on December 15 due to previous attacks.

The Maersk Hangzhou container ship reported a missile attack while passing through the Bab al-Mandab Strait, also known as the "Gate of Tears" in Arabic, followed by additional aggression from four Houthi ships attempting to board it. In response to these incidents, Maersk has decided to postpone all transits through the affected area for the next 48 hours.

India, heavily dependent on the Bab-el-Mandeb Strait for trade with the Middle East, Africa, and Europe, faces challenges as the strait is vital for 12% of global trade and 30% of the world's container traffic. Recent tensions and drone attacks in the area have led major shipping firms to avoid the strait since December 15, impacting critical trade links between Europe, India, and Asia.

Ships bound for Europe will now take a longer route around the Cape of Good Hope, increasing voyage distances by 40%, raising transportation time and cost. India, seeking to diversify trade routes and enhance maritime security cooperation, faces heightened costs and security risks in its trade and energy imports via this route.