Conflict is reshaping global shipping routes and increasing marine insurance risks

Conflict is reshaping global shipping routes and increasing marine insurance risks

Shipping journeys can be nearly twice as long

This rerouting is a direct response to the heightened risk of attacks by Yemen’s Houthi rebels on merchant vessels. Major shipping lines – including Maersk and Hapag-Lloyd – have suspended Red Sea transits, opting for the longer and more expensive Cape route. The logistical impact is substantial: the journey from Jebel Ali Port in the UAE to Hamburg, Germany, is about 6,500 nautical miles (12,000 kilometres) and takes 19 days via the Suez Canal. This extends to 11,800 nautical miles (21,850 kilometres) and 35 days via the Cape of Good Hope.

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