The latest news! Red Sea shipping crisis 'resolved'?

01

On the afternoon of January 10, the United Nations Security Council voted after consultations on a draft resolution jointly drafted by the United States and Japan on the situation in the Red Sea. In the vote, 11 countries supported and 4 countries chose to abstain. The majority of the votes were in favor, so the resolution was passed.

The resolution condemns at least 26 attacks by the Houthis on commercial ships since November 19, 2023, and requires the Houthis to immediately stop such actions. The draft resolution states that the navigation rights and freedoms exercised by merchant ships in accordance with international law must be respected, and emphasizes the right of Member States to protect their vessels from attacks, including those that undermine navigation rights and freedoms, in accordance with international law.

U.S. Secretary of State Blinken warned the Houthis that if they continue to attack ships, there will be consequences.

This is not the first warning issued by the United States. In December 2023, the United States announced that it would form a "Red Sea Escort Alliance." However, many EU countries immediately expressed their refusal to act under the leadership of the United States.

Mohammed Ali Houthi, Chairman of the Supreme Revolutionary Council of the Houthi Armed Forces, stated on the 11th that the United Nations resolution on Red Sea navigation is nothing more than a "political game" and that the United States is the party that violates international law.

On the evening of the 10th local time, Mohammed Abdul Salam, spokesman and chief negotiator of the Houthi armed forces in Yemen, issued a statement saying: ❶The shipping lanes of the Red Sea and the Arabian Sea are currently safe. The United States is misleading the world by saying that the relevant sea areas are threatened, trying to militarize the Red Sea. ❷The Houthi armed forces have only targeted Israeli-related targets in their attacks and will continue to target Israeli ships and ships heading to Israeli ports until Israel ceases its military operations against the Gaza Strip and lifts the blockade.

Ali Houthi posted on the social platform X, "The actions of the Houthis in Yemen are carried out within the framework of legitimate defense, and we will respond to any action we face." He also called on the Security Council to take immediate action to save the 2.3 million people trapped in Gaza "by Israel and the United States."

02

Although the vast majority of shipping giants have expressed their intention to suspend shipping plans in the Red Sea (many container shipping companies have suspended sailings in the Red Sea), there are also those who "do not believe in evil". It is reported that some small and medium-sized shipping companies, especially China's start-up operators, are still willing to provide services to the region and are looking to charter ships. Operators can demand higher rates for shipping goods to the Persian Gulf, where demand is still strong, or even through the Red Sea (perhaps the high returns behind them are the real reason why these shipping companies do not give up Honghai operations).

Milaha Line, X-Press Feeders and SeaLead Shipping have all chartered vessels for Red Sea trade voyages, sources said.

Although the current risk of shipping in the Red Sea is still very high, according to previous news, the Houthis armed forces have given security suggestions for the Red Sea industry, proposing that every ship passing through the Red Sea, Bab el-Mandeb Strait or the Arabian Sea can declare in advance that it "has no relationship with Israel." , “This step does not require the militarization of the Red Sea and will not harm international shipping.

And the Houthis gave examples of safe shipping in the Red Sea:

Due to drought restrictions in the Panama Canal and the intensification of the Red Sea crisis, most shipping companies have chosen to bypass the Cape of Good Hope. International shipping is under unprecedented pressure and both shippers and carriers will spend more time (freight delays may last up to 7 to 15 days) and costs (skyrocketing to US$10,000!) to complete cross-border cargo delivery, container congestion at ports may intensify again.

It is worth noting that there are already some container ships using the solution provided by the Houthis armed forces - declaring "NO CONTACT ISRAEL" in advance to safely pass through the Red Sea, but it is unclear whether more shipping companies (especially Maersk and Hapag) will The world's major shipping giants) recognized and accepted this plan. If they all follow suit, the Red Sea shipping crisis will be lifted, and vice versa will continue.

According to Project44, a US logistics service provider, there may be a shortage of available items in some parts of the world in the coming weeks. Retailers fail to account for additional lead times due to unforeseen events when planning inventory. After the peak holiday demand, inventory is likely to be depleted. This may become apparent starting in February.

Accufast reminds all foreign traders ❶to communicate with overseas customers in a timely manner about inventory and future order issues. It is recommended to arrange orders as early as possible and ship goods as soon as possible ❷ If there is a demand for shipments in the near future, such as CFR/CNF or CIF, etc., please try to confirm the freight with the cooperative forwarder several times, to confirm the reliability and timeliness of the quotation. ❸At the same time, be wary of and reject the ultra-low quotation scams of some freight forwarding companies.

Do you think all shipping companies’ ships will cooperate with the Houthi armed forces’ “security recommendations” to completely resolve the Red Sea cargo crisis? Or will it eventually be resorted to force? Can using force really solve the Red Sea problem? Will it inversely aggravate the problem?