Headlines
Shipping costs rise as vessels boycott Red Sea route
Disruptions along the Red Sea trade route have begun pushing up shipping and insurance costs as shippers have begun taking longer routes fearing further attacks.
Meanwhile, container shipping giant Maersk Friday said it is diverting all vessels from Red Sea routes around Africa’s Cape of Good Hope for the foreseeable future, warning customers to prepare for significant disruption.
Another official said: “During the last few days, exporters are holding back consignments due to rising costs.
The trip around Africa can add about 10 days to journey times and requires more fuel and crew time, jacking up shipping costs.
“The situation is constantly evolving and remains highly volatile, and all available intelligence at hand confirms that the security risk continues to be at a significantly elevated level,” Maersk said in a statement on Friday.
The Indian Navy said earlier this week that task groups of frigates and destroyers had been deployed in the central and northern Arabian Sea to assist merchant vessels passing through the region.
Last week, the US and eleven other countries issued a joint statement reiterating a call for an end to Houthi attacks in the Red Sea.
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” You can therefore be sure of an increased momentum in our resolve to sustain maritime safety, security, environmental protection and adherence to relevant conventions and protocols with renewed vigour.”
The DG concluded by acknowledging the support of President Bola Ahmed Tinubu, Adegboyega Oyetola, Minister of Marine and Blue Economy, industry stakeholders, management and staff of NIMASA as well as all Nigerians and wished everyone a Merry Christmas and a prosperous New Year.
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