21/06/2024
Shipping associations issue joint statement on Red Sea attacks
The world’s shipping associations have joined together to make a statement on the current situation in the Red Sea and Gulf of Aden, which has resulted in another sinking and loss of life for a seafarer.
“It is deplorable that innocent seafarers are being attacked while simply performing their jobs, vital jobs which keep the world warm, fed, and clothed,” the world’s top shipping associations said in a joint statement, adding that “these attacks must stop now. We call for states with influence in the region to safeguard our innocent seafarers and for the swift de-escalation of the situation in the Red Sea.”
While it is unlikely that the Houthis will pay much attention to the statement, it is an indication of the strength of feeling in the global shipping industry, which feels that it is being dragged unfairly into a conflict not of its making, and on which it has taken no public side.
The Iran-aligned Houthis first launched drone and missile strikes on the Red Sea trade route in November 2023, stating that it was in solidarity with Palestinians in Gaza. Since then there have been more than 70 attacks, and one hi-jacking (the Galaxy Leader) which has resulted in the detention of the ship’s crew. At least three seafarers have been killed – civilians only doing their job.
On Wednesday June 19th it was confirmed that the Tutor had sunk as a result of being struck by a remote-controlled boat loaded with explosives, and then by missiles.
The use of an attack drone boat, with dummies placed in positions to make it seem to be a manned vessel, has raised significant concerns. The three additional factors of concern are (a) that these boats can carry up to 10 times as much explosive as a UAV travelling through the air (up to 500kg); they strike the target vessel at waterline level, making water ingress far more likely, and (c) by the time it is established that it is not a manned boat, it can be too late to prevent impact.
Munro Anderson, head of operations at marine war risk and insurance specialist Vessel Protect, part of Pen Underwriting, said that there had been 10 Houthi strikes so far this month, double the number experienced in May. “The first successful use of an unmanned surface vessel represents a new challenge for commercial shipping within an already complex environment,” he said.
Additional war risk premiums had been at about 1% for a journey through the Red Sea at the beginning of the year, but had declined somewhat, to about 0.7%, by the beginning of June, partly because, although the Houthis had claimed some high-profile “hits”, most ships had been able to continue their journey and to reach safety.
With the new attack method looking hard to combat, at least in the short term, there was an expectation that rates could return to earlier levels.
The attacks have other impacts. One is that the Suez Canal is suffering a severe hit to its income, with a significant percentage of vessels travelling from Asia to Europe or the Americas diverting via the Cape of Good Hope. Container ship sailings through the Red Sea dropped 78% in May compared with a year ago, analysis from logistics platform project44 showed.
The other effect is that an already existing shortage of seafarers could be exacerbated. While merchant ships might employ armed guards on board (which are of more use in defence against piracy than against missile and drone attacks) the average merchant seaman will have had no military training at all, and would never have heard a missile explode either near or, worse, on a ship.
John Canias, head of maritime operations with the International Transport Workers’ Federation (ITF), said that the nearly 360,000 seafarers covered by an ITF agreement worldwide have the contractual right to refuse to sail in designated war zones and demand repatriation at the shipowner’s expense. In April, one such zone in the Red Sea, known as a “warlike operations area”, was expanded at ITF’s request, Canias said.
“Many shipowners are now more reluctant to sail through the area as they simply don’t want to put seafarers’ lives on the line,” he said.
Source: Marine Insurance News 21/06/2024
