Germany's Hapag-Lloyd and Hong Kong's OOCL have announced plans to avoid the Red Sea due to ongoing attacks by Yemen's Houthi group on vessels, disrupting global trade. The Iran-aligned Houthis claim their actions are in response to Israel's war in Gaza. Hapag-Lloyd intends to reroute 25 ships by year-end, contributing to increased freight rates and shipping stock volatility. Other companies, including Finnish elevator maker Kone, anticipate delays of up to three weeks. The situation has prompted the establishment of a naval task force, although uncertainties persist about its effectiveness. Traders seek alternative routes as the disruption affects supply chains, potentially causing shortages in stores by February. Meanwhile, Greece and the United States have formed a multinational coalition to safeguard shipping in the region, while Houthi threats to escalate attacks raise concerns of a wider conflict.

SOURCE:GOOGLE