Hapag-Lloyd to continue diverting ships from Red Sea

By Andrea Figueras

German container shipping company Hapag-Lloyd said it will continue to divert its ships from the Red Sea, even as some of its peers plan to gradually increase transits through the area.

A spokesperson of the German shipping company said the decision was made at a meeting of its crisis committee on Friday, and that it will make the next assessment on Tuesday.

Hapag-Lloyd's (XE:HLAG) decision shows divergences in how shipping companies are navigating risks in the Red Sea despite the deployment by the U.S. and its allies of naval ships to deter further strikes by Houthi rebels from Yemen.

A.P. Moller-Maersk (DK:MAERSK.B) aims to resume shipments through the Red Sea and CMA CGM said it plans to gradually increase the number of vessels transiting through Egypt's Suez Canal. Meanwhile, Mediterranean Shipping Co. earlier this week said it would continue to reroute vessels booked for Suez transit via the Cape of Good Hope.

Shipping companies as well as oil producers and cargo owners suspended transit through the Red Sea earlier this month following attacks on vessels by Iranian-backed Houthi rebels.

Write to Andrea Figueras at andrea.figueras@wsj.com

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12-29-23 0734ET

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