Shell suspends all shipments through Red Sea following US and UK strikes

Price of crude oil traded slightly higher at $78 a barrel amid the Red Sea conflict.

Shell has suspended all shipments through the Red Sea indefinitely after US and UK strikes on Yemen's Houthis triggered fears of further escalation, while Japan's Nippon Yusen, the country's biggest shipper by sales, became the latest shipping giant to suspend navigation through the Red Sea. 

Last month, a tanker chartered by Shell to move Indian jet fuel was targeted by a drone in the Red Sea and harassed by Houthi boats, said the Wall Street Journal, which first reported the suspension by Shell. The price of crude oil traded slightly higher at $78 a barrel. 

Nippon Yusen, also known as NYK Line, has also instructed its vessels navigating near the Red Sea to wait in safe waters and is considering route changes, a spokesperson said. 

It is the latest operator to cease traversing the key shipping corridor following an advisory from the US military to stay clear of the region after the launch of US and British air strikes on Houthi forces in Yemen. 

Hapag-Lloyd, the German container shipping line, said this week it would continue to divert vessels away from the Suez Canal and around Africa. 

Shipping firm Maersk said on Tuesday it sent two container ships through the Red Sea carrying goods for the US military and government. The vessels sailed in the "near proximity of US Navy assets, which have reduced the risks to the crews and cargo", Maersk told Reuters. 

MSC, or Mediterranean Shipping Company, said last month its ships would not transit through the Suez Canal, with some already rerouted via the Cape of Good Hope.

The clashes in the Red Sea will disrupt supply chains and add to costs and prices, EY Ireland partner Neal Johnston said. 

"The ongoing attacks on shipping in the Red Sea are impacting the global supply chain, causing delays and concerns for businesses who use the Suez Canal, one of the most important sea routes globally through which circa 15% of all global trade passes through," he said. 

• Reuters and Irish Examiner