Secretary-General of the International Maritime Organization Arsenio Dominguez has stressed that the IMO supports freedom of navigation and calls for calm in the Red Sea region.
During his meeting with Chairman of the Suez Canal Authority (SCA) Admiral Ossama Rabie on Thursday, the IMO secretary-general explained that the current situation in the Red Sea region imposes many challenges on the global trade movement, the maritime transport market, the Suez Canal, and the ports in the region.
He affirmed that navigation in the canal is still open to everyone “especially in light of the logistical and security challenges faced by the vessels that go around the Cape of Good Hope,” noting that the “Cape route is deemed unsustainable for navigation traffic as it lacks essential services.”
For his part, Rabie stated that the Suez Canal achieves savings in time and distance compared to alternative routes, and this contributes to reducing fuel consumption by rates ranging from 10 to 90 percent, consequently reducing harmful carbon emissions.
He noted that the Suez Canal reduced carbon emissions by 55.4 million tons in 2023 by saving 16.9 million in fuel consumption.
The SCA Chairman also stressed that navigation in the canal is regular and “has not stopped for a single day” since the outbreak of the crisis, as part of the SCA’s continued efforts to support its clients to mitigate the impact of the current situation.
Additionally, Rabie reviewed the package of navigational and maritime services provided by SCA, which includes, in addition to pilotage services, Bunkering services, ship repair and maintenance services at SCA shipyards, marine ambulance services, marine salvage services, pollution control and other services that the Canal-transiting vessels may need in normal and emergency circumstances.
Yemen’s Houthi movement has been targeting Israel-linked vessels in the Bab Al-Mandab Strait in the Red Sea as an expression of solidarity with the Gaza Strip, which has been under an Israeli attack since October 7.
In response, the US and the UK have hit several Houthi sites to disrupt and degrade the capabilities that the Houthis use to threaten global trade.
Australian mining giant BHP said on Thursday that the Red Sea disruptions are forcing some of its freight service providers to take alternative routes, such as SA's Cape of Good Hope, while others still prefer the Red Sea with additional controls.
“The Red Sea is one of the key shipping routes in the world. However, the majority of BHP’s shipments do not go through this route,” and there have been no major business disruptions so far, the world’s largest listed miner said in a statement.
BHP Group is diverting almost all of its shipments from Asia to Europe away from the Red Sea, the Wall Street Journal reported on Thursday.
It generated $1.96 billion in revenue from Europe in 2023, about 3.6 percent of its total revenue of $53.82 billion.
The move follows reports from companies such as Kuwaiti oil majors BP and Shell that have paused transits through the Red Sea as strikes on commercial vessels by the Iran-aligned Houthis have stymied trade between Europe and Asia.
Some shipping companies have instructed vessels to reroute via a slower and more expensive Cape of Good Hope.
Kuwait Oil Tanker Company (KOTC) said on Thursday it is monitoring and assessing the situation in the Bab Al-Mandeb Strait and Red Sea.
It underlined in a press statement to KUNA that it is following globally applied precautionary measures for the protection and safety of its fleet.
It reiterated that it backs Kuwaiti oil shipments to global markets.
The Kuwaiti newspaper Al-Rai, citing informed sources, said the company has decided to temporarily suspend the passage of its tankers in the Red Sea due to the evolving events in the region.
The newspaper reported that the decision for the temporary suspension is subject to continuous periodic review until the region stabilizes, confirming "the Kuwait Petroleum Corporation's full commitment to implementing its contracts with various countries, using foreign tankers."
Qatar Energy announced on Wednesday that the attacks in the Red Sea “may affect” the scheduling of liquefied natural gas (LNG) shipments, in contrast to production, which it assured was “continuing without interruption.”
In a statement, the company said: “While the ongoing developments in the Red Sea area may impact the scheduling of some deliveries as they take alternative routes, LNG shipments from Qatar are being managed with our valued buyers.”
