A Shipping agent has warned that the continuous boycott of the Red Sea and the Suez Canal by international shipping lines may lead to an increase in the cost of shipping freight for import and export cargoes.
Recall that major shipping lines like A.P. Moller – Maersk, Hapag-Lloyd AG, CMA CGM and MSC Mediterranean Shipping Company all recently announced the stoppage of sending ships through the waters where the Bab-El-Mandeb Strait leads to the Suez Canal after attacks on two shipping companies’ vessels by Houthi rebels.
Speaking with the Nigerian Tribune, a shipping agent who doesn’t want his name in print explained that the Suez Canal is a short route for ships trying to navigate the Atlantic and Pacific waters from Asia.
According to the shipping agent, “The Suez Canal is important because it is the shortest maritime route from Europe to Asia. Over the years, the Suez Canal has gained prominence in shipping because it affords shipping lines the opportunity to cut cost while moving goods globally.
“However, that flow has now been disrupted, no thanks to attacks on merchant ships by the Houthi rebels. Two ships have already been attacked and many of the shipping lines, including notable ones that call West African Ports like MSC, Maersk, CMA-CGM have all stopped their vessels from passing through this short route.
“The implication is clear; cost of freight will become affected if the situation stays the same. Shipping charges will go up because the foreign shipping lines are in business to make profit.
“For a country like Nigeria that is an import dependent country, the cost of shipping cargoes here might go up. Except the world acts now and stops the militarization of the areas leading to the Suez Canal from the Red Sea, shipping charges might shoot up.”
When asked if ships could engage Armed Guards, the shipping agent explained that, “The issue we are facing is not piracy, so the engagement of armed guards might not suffice because we are talking of non-state actors and state-actors at war with each other. Firing at ships is unnecessary but we all know that this conflict has political undertone.
“So, I won’t be surprised if the cost of freight shoots up as vessels look for alternative routes to navigate through to their destinations.”
