Shipping Giant MSC Says It Will Avoid Red Sea for Now
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Container liner MSC Mediterranean Shipping Co. SA said it will continue to send its ships around Africa’s southern tip until further notice, a sign that any resumption to normal trade flows through the Red Sea is not imminent.
“The situation in the Suez Canal remains fluid and the security situation is unclear,” the company said by email Tuesday. “In order to guarantee the safety of our seafarers and to ensure consistency and predictability of service for our customers, MSC will continue to transit via the Cape of Good Hope until further notice.”
MSC ranks No. 8 on the Transport Topics list of the largest global freight companies.
The Switzerland-based business operates 884 ships, according to Alphaliner data, making it the world’s largest container carrier controlling about 20% of global capacity.
Yemen’s Houthi rebels said over the weekend that they would stop attacking ships with links to the U.S. and U.K. after a ceasefire agreement between Israel and Hamas, but it has been uncertain how that announcement would impact shipping.
About 70% of vessel traffic has been sailing thousands of miles around Africa rather than through the Red Sea since the Houthis first began attacking ships in 2023.
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