Measures to protect ships amid Red Sea attacks implemented

Deputy Shipping Minister Marina Hadjimanolis on Wednesday said that in light of recent attacks carried out by the Iran-aligned Yemeni Houthi militant group on ships in the Red Sea, the Cypriot government has taken temporary measures to protect Cypriot ships passing through the Bab-el-Mandeb strait between Yemen and northeast Africa.

Speaking to journalists, Hadjimanolis said that “following the attacks and considering the threat to the ships’ safety, major shipping giants decided to change their routes and suspend cargo transfers in the region.”

According to the deputy minister, the move will greatly impact global economy and global trade.

“The extra cost to sustain the maritime trade is linked to the fact that merchant ships are forced to use longer routes, lengthening the required travel time and adding delays, since they are now forced to avoid the Red Sea and the Suez Canal – the shortest sea route from Asia to Europe – due to the threat from the Houthis,” Hadjimanoli explained.

“This 6,000-mile detour leads to delays of up to two weeks for vessels berthing in the Mediterranean.”

She also added that expanding the length of the travel period of ships that change their route will also have an impact on the environment, “since there is more fuel consumption and a greater number of emissions.”

“In addition to that, as a result of the attacks and the increased risk for the security of ships, there is also a significant increase in the cost of insurance for ships that pass through this area.”

Hadjimanoli then said that the deputy shipping ministry issued an official decree last Saturday expanding the high-risk zones to cover the areas of the attacks.

“We alerted stakeholders in the shipping industry about the temporary measures that have been taken,” Hadjimanoli assured.

Echoing the deputy minister, the general secretary of the Cyprus Chamber of Commerce (Keve) Marios Tsiakkis told AlphaNews that “the repercussions of the attacks in the Red Sea and the Suez Canal region by the Houthis are inevitable and are taking a severe toll on the global economy and trade.”

“Approximately 10 per cent of global trade annually passes through what is the largest maritime corridor between the East and West, carrying products from China, India, Korea, and Singapore,” Tsiakkis explained.

“Cyprus serves as a crucial intermediate stop for ships heading towards Europe or the Americas. The diversion of ships and the alteration in routes will result in a tsunami of price hikes.”

He then added that, because of the attacks, ships are being forced to circumnavigate Africa to reach their destination.

“This significantly increases both time and costs. Surcharges have already been imposed. A 20-foot container previously cost €1,660, now it’s an additional €450, and information suggests it will rise to €900 by mid-January. A 40-foot container, priced before at €2,110, will rise to €1,800 by mid-January. This will impact product prices, and consumers will bear the consequence,” Tsiakkis said, adding that the average travel time for commercial vessels has increased by around 20 days per route.

“Each ship carries thousands of containers, resulting in substantial delays in product deliveries. Companies will need to place larger orders to cover supply delays. This necessitates more liquidity, potentially leading those without it to ask for loans.”

“This will impact commerce and potentially escalate inflation as we may witness price hikes. Cyprus conducts 55 per cent of its imports and exports with Europe, 15 per cent with the Americas, and the remainder with Asia, encompassing all raw materials and machinery,” Tsiakkis concluded.