Analysts in the shipping sector reported – today, Friday – that more ships loaded with grain turned away from the Suez Canal to take the Cape of Good Hope route this week, with continued fears of Houthi attacks on ships in the Red Sea.
“Thirteen more ships were diverted this week, bringing the total shipments diverted away through the Red Sea to about 5.2 million tons of grain on about 90 ships since the attacks began late last year,” said Ishaan Bhanu, a senior agricultural commodities analyst at consulting firm Kpler.
About 7 million tons of grain per month usually cross the Suez Canal into the Red Sea, but other types of shipping have decreased significantly as the Ansar Allah group (Houthis) continues its attacks on ships despite US-led air strikes on the group’s sites in Yemen.
“American and European shipments are still avoiding the Red Sea, and no ship in the Atlantic Ocean carrying grain to Asia is heading towards the Suez Canal,” Bhanu said.
Transatlantic shipments include large exports of US grain to Asia.
Bhanu added, “Almost all shipments coming from the Black Sea, most of which are exports from Russia and Romania, continue to travel via Suez and the Red Sea… Only three of these ships diverted to take the longest route among dozens of sailing ships.”
He added that ships in the Red Sea broadcast messages on the automatic identification system to search for safe passage to show that they are not involved in the Middle East conflict, including ships owned by China.
Commodity traders said it was still possible to find bulk carriers for grain shipments crossing the Red Sea.
A German grain trader said, “There are shipowners willing to take risks… but it is clear that air strikes and naval forces are not enough to end attacks on ships in the near future.”
