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Impacts of the Red Sea Crisis: Maersk subsidiary stops transit due to missile attacks, while emissions increase due to the redirection of global shipping lanes.

Written by Paulo Nogueira
Published 25/01/2024 às 07:45
Maritime crisis, Red Sea conflict, Naval attacks
Impacts of the Red Sea Crisis on Global Maritime Routes – PHOTO: ©2024 OFF Shore Energy

Container ships Maersk Detroit and Maersk Chesapeake attacked by anti-ship missiles. Increased emissions, redirection of services and deliveries of some cargo.

In January 2024, the Red Sea Crisis came to prominence when two US-flagged container ships, Maersk Detroit and Maersk Chesapeake, were attacked by anti-ship missiles while transiting by Bab el-Mandeb.

The attacks, which were part of a potential conflict in the Red Sea, were confirmed by Maersk, which said the ships were being escorted by the US Navy and were transporting military supplies from the country.

Specifically, the vessels are included in the US Government's Maritime Security and VISA (Voluntary Intermodal Sealift) Program.

Red Sea Crisis

While en route, both ships reported seeing explosions nearby and the accompanying US Navy also intercepted several projectiles. The crew, ship and cargo are safe and unharmed. The US Navy turned the two ships around and escorted them back to the Gulf of Aden', Maersk said in a statement to Offshore Energy.

Maritime crisis: naval attack in the Red Sea

'The safety of our crews is of utmost importance. Following the escalation of the risk, MLL is suspending traffic in the region until further notice. We are developing network contingencies and will keep you informed.'

According to US Central Command, the Maersk Detroit was targeted by anti-ship ballistic missiles fired by Yemen's Houthi forces.

Red Sea conflict and anti-ship attacks

'A missile fell into the sea. The other two missiles were successfully attacked and shot down by USS Gravely (DDG 107). There were no reports of injuries or damage to the ship',USCM said.

The last attack occurs shortly after the US and UK-led attacks on Houthi positions in Yemen in response to their attacks on commercial shipping in the Red Sea.

The attacks were criticized by China and Russia at the UN as too hasty, with fears that they could result in a new escalation of tensions in the region and the repercussions of the conflict in the Middle East.

Furthermore, the latest round of airstrikes has further increased tensions in an already fragile ceasefire in Yemen.

Houthi forces initially said they would attack only Israel-linked and Israel-bound ships, demanding that humanitarian aid be delivered to Gaza and seeking a ceasefire in the Strip. Israel's war on Gaza has killed more than 25.000 Palestinians since it began on October 7. However, after an exchange of fire with a US Navy ship and subsequent airstrikes, Houthi forces have now targeted U.S.-flagged ships as well.

Impact on maritime transport services

A growing number of companies across all shipping sectors are rerouting their services around the Cape of Good Hope for safety reasons.

QatarEnergy, one of the world's largest LNG producers, said yesterday that the conflict in the Red Sea could impact deliveries of some liquefied natural gas (LNG) cargoes as they follow alternative routes, although shipments are being managed with buyers. .

'Qatar's LNG production continues uninterrupted and our commitment to ensuring reliable LNG supplies to our customers remains unwavering,' Reuters reports, citing a company statement.

Meanwhile, other companies, such as Hapag-Lloyd, are moving to terrestrial solutions. Notably, the German major said he introduced land service corridors from Jebel Ali, Dammam and Jubail to Jeddah as a response to the Red Sea crisis.

Rising emissions and changes in maritime transport

An end to the growing conflict in the Red Sea appears to be nowhere in sight, forcing shipping companies to opt for routes around Africa in the near future, which is resulting in an increase in CO2 emissions.

As explained by Alan Murphy, CEO of Sea-Intelligence, there are three elements to consider: increases in emissions due to longer sailing distances, potential increases due to faster sailing speeds (to maintain weekly sailings) and if there is a change of ships large to smaller, less fuel-efficient ships.

Using a container proxy service, Sea-Intelligence can estimate the scale of these increases in CO2 emissions.

'If shipping companies use exactly the same ships, at exactly the same speed, then emissions increase in a 1:1 ratio with increasing sailing distances. As shipping distances around Africa are on average 31% and 66% longer to Asia to Northern Europe and the Mediterranean respectively, CO2 emissions will increase by these factors at a minimum,' explained Murphy .

'If ships also sail faster, emissions will increase further as the fuel consumption is not a linear function of browsing speed. For example, based on our fuel consumption model, a 1 knot increase in speed, from 16 to 17 knots, will increase emissions by 14%.'

Finally, as shipping lines strive to acquire additional capacity to cover longer sailing distances, smaller and less fuel-efficient ships are being deployed in Asia-Europe.

On a TEU basis, some of these smaller ships experience an increase in CO2 emissions of 141% compared to conventional ULCVs. Bringing all three components together could lead to CO2 emissions increases of 260% and 354% for Northern Europe and the Mediterranean, respectively, Murphy emphasized.

'There is no realistic way to mitigate the increase in emissions, at least those due to increased shipping distances', concluded.

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Source: © OFF Shore Energy

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Paulo Nogueira

An electrical engineer graduated from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), I worked for several years in the areas of offshore oil and gas, energy and construction. Today, with over 8 publications in magazines and online blogs about the energy sector, my focus is to provide real-time information on the Brazilian employment market, macro and micro economics and entrepreneurship. For questions, suggestions and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes for this purpose.

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