NewsNation

Maersk rerouting ships to avoid Red Sea, price hikes possible

(NewsNation) — Maersk and several other shipping and oil companies are re-routing their cargo ships around Africa and the Cape of Good Hope to avoid conflict in the Red Sea. That means more man hours and fuel burned, which could also mean higher prices for the goods it’s carrying to you, like gasoline.

Retired Lt. Gen. Richard Newton suggests that the global trade impact could push the U.S. to do more to deter or stop the Houthi rebels who are harassing the ships.


“That’s quite an economic burden. That’s where I think you’re going to see the United States, especially as we leave this Coalition Task Force, to perhaps demonstrate more capability — firepower and so forth. But if the Houthis aren’t going to respond to that, I think the only option we’ll have is to actually strike targets, which is something we don’t want to do,” Newton said.

Houthi rebels are vowing to continue attacking ships traveling to and from Israel as a show of support for Palestine. Additionally, Iran deployed a naval destroyer to the area this week; its mission remains unclear.

Maersk, one of the largest shipping companies in the world, announced Tuesday that it would suspend travel through the Red Sea and the Gulf of Aden until further notice after a Houthi attack on a Maersk ship over the weekend, prompting the U.S. military to respond.

According to U.S. Central Command, a group of military helicopters sank three of the attack boats and killed 10 militants. The military added that the rebels fired on the helicopters, but no soldiers suffered injuries.

Over the past few weeks, shipping companies have reported similar types of threats and attacks from Houthi rebels.

So far, the U.S. Central Command has reported 24 attacks on cargo ships in the Red Sea since mid-November.