Maersk Halts Shipping Through Rebel-Rocked Red Sea Until Further Notice

Shipping and logistics behemoth A.P. Moller-Maersk said Tuesday that it's suspending its shipping operations through the Red Sea until further notice as it investigates an attack on one of its ships by Iran-backed Houthi rebels this past weekend.

The Copenhagen-headquartered shipping company previously said it would pause all transit in the area for 48 hours starting on Dec. 31. Now it's extending that pause after one of its ships was hit by an unknown object while it passed through the Bab al-Mandab Strait in the Red Sea en route from Singapore to Port Suez, Egypt. Following the attack, four Houthi-manned boats approached the Maersk Hangzhou vessel, opened fire and tried to board it.

"An investigation into the incident is ongoing and we will continue to pause all cargo movement through the area while we further assess the constantly evolving situation," the company said in an updated statement on Tuesday. Maersk had already diverted dozens of ships that had been scheduled to cross through the Red Sea.

The body of water is a critical transit point for global trade because it's a gateway to the Suez Canal, one of the world's most important trade corridors. Nestled between Saudi Arabia, Egypt and Sudan, the Red Sea processes roughly 12% of global trade and nearly one-third of global container-ship traffic, according to Foreign Policy magazine. The body of water connects Europe and Asia and avoids a much longer trip around South Africa.

The U.S. Navy sank three of the four attacking boats — one escaped — as it responded to distress calls from the Maersk ship. The company latser said that all crew aboard its vessel were safe.

In December, global shipping giants including Hapag-Lloyd, CMA CGM, Yang Ming Marine Transport, Evergreen and BP said they were pausing or diverting their vessels traveling through the Red Sea after a series of attacks on commerce vessels by the Yemen-based Houthis.

The rebel group has targeted Israel-linked ships in the Red Sea since that country launched its war in Gaza following Hamas' deadly Oct. 7 attacks.

The most recent ship attack occurred just days after Maersk's Dec. 29 announcement that it would resume operations in the area due to the deployment of a U.S.-led military force, Operation Prosperity Guardian (OPG), set up to protect maritime commerce passing through the Red Sea.

The ongoing conflict in the region has put the stability of international trade at risk as 10% to 15% of all global trade passes through the Red Sea every year.