By Adria Calatayud

Hapag-Lloyd said it will continue to sail around the Cape of Good Hope as it sees the Red Sea as still dangerous following recent attacks on vessels by Yemeni Houthi militants.

"We deem the situation still dangerous and will continue to sail around the Cape of Good Hope," a spokesperson for the German shipping company said Tuesday.

Shipping companies as well as oil producers and cargo owners suspended transit through the Red Sea last month after attacks by Iranian-backed Houthi rebels, which continued even after the U.S. and its allies deployed navy ships in the region to deter further strikes.

The International Maritime Organization last week said that at least 18 shipping companies had decided to reroute their vessels around South Africa, adding 10 days to the journey, hurting trade and increasing freight rates.

The Red Sea is a key shipping lane, with around 15% of international shipping trade passing through its waters, according to the IMO.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

January 09, 2024 06:22 ET (11:22 GMT)

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