Current:Home > FinanceBP is the latest company to pause Red Sea shipments over fears of Houthi attacks -Wealth Nexus Pro
BP is the latest company to pause Red Sea shipments over fears of Houthi attacks
View
Date:2025-04-13 23:25:21
LONDON (AP) — Oil and natural gas giant BP has joined the growing list of companies that have halted their shipments through the Red Sea because of the risk of attack from Yemen’s Houthi rebels, threatening a major trade route in what is expected to have global effects.
London-based BP said Monday that it has “decided to temporarily pause all transits through the Red Sea,” including shipments of oil, liquid natural gas and other energy supplies. Describing it as a “precautionary pause,” the company said the decision was under ongoing review but that it was prioritizing crew safety.
Oil prices rose Monday partly over market nerves about attacks by the Iranian-backed Houthis, which have targeted container ships and oil tankers passing through a narrow waterway that separates Yemen from East Africa and leads north to the Red Sea and Suez Canal, where an estimated 10% of the world’s trade passes through.
The Houthis have targeted Israeli-linked vessels during Israel’s war with Hamas but escalated their attacks last week, hitting or just missing ships without clear ties.
In the past few days, four of the five world’s largest container shipping companies have paused or rerouted movements through the Red Sea. Maersk, MSC, CMA CGM Group and Hapag-Lloyd are leaders in alliances that move basically all consumer goods between Asia and Europe, so “virtually all services will have to make this rerouting,” said Simon Heaney, senior manager of container research for Drewry, a maritime research consultancy.
Ships will have to go around the Cape of Good Hope at the bottom of Africa instead, adding days to voyages.
Depending on what companies decide to do, they will have to add more ships to make up the extra time, burn more fuel for the longer journey and if they decide to go faster to meet their itineraries, and that would release more carbon dioxide, Heaney said.
Goods bound for stores for Christmas will have already been delivered, he said, but online orders could see delays.
“The impact will be longer transit times, more fuel spent, more ships required, potential disruption and delays, at least in the first arrivals in Europe,” he said.
That brings up the cost of shipping, but “I don’t think it’s going to go to the heights that it reached during the pandemic,” Heaney said.
Supply chain disruptions as the global economy rebounded from COVID-19 pandemic helped drive up consumer prices for people around the world.
veryGood! (7583)
Related
- Where will Elmo go? HBO moves away from 'Sesame Street'
- 15 Things Under $50 That Can Instantly Improve Your Home Organization
- Challenges to library books continue at record pace in 2023, American Library Association reports
- Speaker McCarthy faces an almost impossible task trying to unite House GOP and fund the government
- Paris Hilton, Nicole Richie return for an 'Encore,' reminisce about 'The Simple Life'
- This is what it’s like to maintain the US nuclear arsenal
- The 2023 Latin Grammy Nominations Are Here: See the Complete List
- Sikh separatism has long strained Canada-India ties. Now they’re at their lowest point in years
- Kylie Jenner Shows Off Sweet Notes From Nieces Dream Kardashian & Chicago West
- He's dressed Lady Gaga and Oprah. Now, designer Prabal Gurung wants to redefine Americana.
Ranking
- The company planning a successor to Concorde makes its first supersonic test
- Clorox products may be in short supply following cyberattack, company warns
- A federal agency wants to give safety tips to young adults. So it's dropping an album
- Iran’s president urges US to demonstrate it wants to return to the 2015 nuclear deal
- 'Most Whopper
- What to know about Taylor Swift's '1989 (Taylor's Version),' from release to bonus songs
- Colts TE Kylen Granson celebrates first NFL touchdown with hilarious baby photoshoot
- Minnesota professor dismissed over showing Islamic art can proceed with lawsuit, judge rules
Recommendation
DoorDash steps up driver ID checks after traffic safety complaints
West Point sued over using race as an admissions factor in the wake of landmark Supreme Court ruling
Border communities see uptick in migrant arrivals in recent weeks: Officials
Vanna White Officially Extends Wheel of Fortune Contract
Arkansas State Police probe death of woman found after officer
AP PHOTOS: Actress, model Marisa Berenson stars in Antonio Marras’ runway production
Mental health among Afghan women deteriorating across the country, UN report finds
AP PHOTOS: Traditional autumn fair brings color and joy into everyday lives of Romania’s poor