• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 22 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 6 days America should go after China but it should be done in a wise way.
  • 12 days Does Toyota Know Something That We Don’t?
  • 1 day World could get rid of Putin and Russia but nobody is bold enough
  • 22 hours How Far Have We Really Gotten With Alternative Energy
  • 2 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 3 days Even Shell Agrees with Climate Change!
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Breaking News:

OPEC Lifts Production in February

£2.99 Long Haul Electric Bus Pilot Launched in UK

£2.99 Long Haul Electric Bus Pilot Launched in UK

FlixBus has launched a three-month…

Exxon Threatens to Derail Chevron's Acquisition of Hess

Exxon Threatens to Derail Chevron's Acquisition of Hess

Exxon is challenging Chevron's acquisition…

Global Shippers Bypass Suez Canal As Security Concerns Persist

The threat of attacks in the Red Sea has prompted half of the container fleet usually transiting the Suez Canal route to divert away from that route, with the number of vessels now traveling around Africa instead doubling from last week, according to data from Flexport Inc reported by Bloomberg.

This week, the number of container vessels that have already changed route or plan to alter course is double from a week earlier. The total of 4.3 million containers those ships can carry account for around 18% of global container capacity, according to the data.  

Earlier this week, some shippers, including giants Maersk, CMA CGM, and COSCO, partially resumed transit through the Red Sea, both eastbound and westbound, after to the launch of Operation Prosperity Guardian, a U.S.-led multi-national task force to protect the waters of the Red Sea and the Bab el-Mandeb Strait near Yemen from attacks from the Iran-aligned Houthi in Yemen. 

As of Wednesday, Maersk had scheduled some of its ships to continue via the Suez Canal, although some were diverted via the Cape of Good Hope in Africa. 

Oil prices fell on Wednesday and were also down early on Thursday as global shipping giants gear up to resume transiting the Red Sea despite an ongoing Houthi missile barrage.

While Maersk and others are resuming shipping in the Red Sea, using evasive maneuver, Germany’s Hapag-Lloyd said on Wednesday that it would not be following suit, deeming the Suez Canal route still too dangerous despite U.S. military protection, the BBC reports. Instead, the shipping giant will reroute vessels via the Cape of Good Hope, which adds 3,500 nautical miles to the trip and a concomitant increase in shipping costs. 

The repercussions of the conflict in the Middle East and the Houthi attacks in the Red Sea could still impact energy markets and supply chains worldwide and drive consumer prices higher, just as the Fed signaled a pivot in the U.S. monetary policy with the potential of three interest rate cuts in 2024.     

By Tsvetana Paraskova for Oilprice.com


More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • William Oil Investor on December 28 2023 said:
    One of the many reasons for lowering the price of oil is to avoid further interest rate increases, that has worked temporarily, but this hope of rates decreasing might change the next time rates increase.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News