BP, one of the leading energy companies based in London, has decided to temporarily suspend all oil-tanker shipments through the Red Sea due to escalating security risks in the region. This decision comes in response to recent attacks by Yemen’s Houthi rebels on vessels transiting through the area.
According to BP, the deteriorating security situation has prompted them to pause all transits through the Red Sea. The company emphasizes that this measure is subject to continuous review to adapt to evolving circumstances in the region.
In solidarity with BP, other major shipping companies have also taken similar steps to ensure the safety of their vessels. Earlier this week, A.P. Moller-Maersk and Hapag-Lloyd announced that their ships would no longer use the southern entrance of the Red Sea following attacks on their vessels. Germany’s Hapag-Lloyd further stated that it will reroute some of its ships via the Cape of Good Hope until it is deemed safe to traverse the Suez Canal and the Red Sea.
The Italian-Swiss Mediterranean Shipping Company and France’s CMA-CGM have also joined the growing list of shipping firms suspending passage through the Red Sea strait in response to the escalating attacks and deteriorating security situation.
The significance of this decision should not be underestimated, as approximately 12% of globally traded seaborne oil and 8% of global liquefied natural gas shipments pass through Red Sea pathways.
Shell, another prominent player in the energy sector, has not yet responded to inquiries about its stance on the matter.
In conclusion, BP’s temporary halt of oil-tanker shipments in the Red Sea highlights the mounting security concerns faced by shipping companies in the region. By prioritizing safety, these companies aim to protect their assets and mitigate potential risks associated with transport through this volatile area.