By Andrea Figueras

German shipping company Hapag-Lloyd said it will continue to avoid the Red Sea because it considers the area is still too dangerous despite the U.S. and allies deploying naval ships to deter further strikes by Houthi militants.

"We continuously assess the situation and plan a next review on Friday," a spokesperson of the German shipping giant said Wednesday. It will continue to reroute its ships via the Cape of Good Hope in South Africa.

Earlier this month, shipping companies, oil producers and cargo owners suspended transit through the Red Sea after some vessels were attacked by Houthi militants, an Iranian-backed rebel group in Yemen, in response to Israel's military operations in Gaza.

On Tuesday, peer Mediterranean Shipping Co. said it would continue to reroute vessels booked for Suez transit via the Cape of Good Hope, and confirmed that one of its container ships was attacked while in the Red Sea.

After the attacks prompted the U.S. and allies to deploy naval ships to deter further strikes, Danish shipping giant A.P. Moller-Maersk said Sunday that it planned to restart shipments through the Red Sea.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

December 27, 2023 08:06 ET (13:06 GMT)

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