Red Sea shipping routes: Have the ongoing security challenges in the Red Sea reshaped global shipping routes?
The volatile situation in the Red Sea, particularly the Houthi attacks, has impacted international shipping routes, pushing many major lines to make significant adjustments. Yet, as some routes shift, new services emerge to maintain critical connections, particularly for shorter regional trades.
Ocean Network Express (ONE) and SeaLead have both announced fresh services aimed at enhancing regional connectivity, calling at key ports around the Red Sea despite the geopolitical risks. These new routes aim to ensure continued flow of trade, focusing on efficiency and regional stability.
Expanding Coverage in Uncertain Waters
Ocean Network Express (ONE) launched the new Red Sea Gulf India 2 (RG2) service, designed to provide better coverage to the region. This new weekly service will connect key ports like Mundra, Jebel Ali, Jeddah, Sohkna, and Aqaba. With the RG2, ONE is bolstering its offerings, adding on top of its existing Red Sea Gulf India service (RGI). The expansion ensures more frequent and reliable service to one of the world’s most geopolitically sensitive regions.
However, the growing security risks in the Red Sea, particularly the escalating threat of Houthi attacks, have prompted many large shipping lines, including ONE, to reroute their long-haul services between Asia, Europe, and the US East Coast. Most services are now travelling via the Cape of Good Hope to avoid the Red Sea altogether.
Despite these risks, for regional trades within the Middle East and into Red Sea ports, rerouting isn’t a feasible option. This is where regional operators like SeaLead come into play, maintaining their presence in these critical waters.
SeaLead’s Bold Move into the Red Sea
While global lines adjust, SeaLead has forged ahead with its new Far East India Djibouti (FID) service, further solidifying its role as a regional player. The FID service, launched on 5 September 2024, is strategically designed to improve connectivity between China, India, and East Africa, with Djibouti serving as a crucial hub at the southern entrance to the Red Sea.
Djibouti, located on the African shore of the Bab-el-Mandeb Strait, plays a vital role in the global maritime industry. The strait is a narrow waterway where commercial ships have faced attacks since November 2023. By leveraging Djibouti’s key position, SeaLead hopes to provide faster, more reliable connections for their customers despite the security risks.
According to Suleyman Avci, Global CEO at SeaLead, the new service enhances the company’s offerings in China, India, and East Africa, building upon Djibouti’s importance as a key maritime hub. SeaLead has made strategic choices to stay active in the Red Sea, operating services like the India – Turkiye and China – East Asia – Turkiye routes, all of which continue to transit through this risky but crucial region.
Adapting to a Shifting Landscape
The reorganisation of major shipping routes underscores the complexities of global trade in a region marred by instability. While many international players have chosen to reroute to safer waters, regional operators like SeaLead remain committed to navigating the Red Sea’s treacherous waters, ensuring vital connections are maintained.
For ONE and SeaLead, the choice to expand services within the Red Sea region is not only strategic but necessary. The world’s reliance on the Red Sea as a major trade corridor continues, and for now, both companies are pushing forward, committed to keeping goods flowing between Asia, the Middle East, and Africa.
Case Study: SeaLead’s FID Service in Djibouti
Launched amidst growing security risks, SeaLead’s Far East India Djibouti (FID) service is an exemplary case of strategic expansion in volatile waters. The service, which links China, India, and East Africa, begins in Shanghai and calls at major ports such as Ningbo, Nansha, Port Klang, and Nhava Sheva before reaching Djibouti.
Djibouti’s location at the southern entrance to the Red Sea makes it a critical maritime hub. SeaLead’s decision to focus on Djibouti highlights the importance of this strategic location in keeping global trade flowing, even as shipping lines reroute long-haul services away from the Red Sea due to Houthi attacks.
Suleyman Avci emphasised that this service is a key step forward for the company, enhancing their operational capabilities across China, India, and East Africa. By leveraging Djibouti’s key position, SeaLead aims to provide greater coverage and ensure faster, more reliable connections, particularly as regional trades continue to rely on the Red Sea despite security concerns.
SeaLead’s commitment to maintaining operations through the Red Sea showcases the company’s resilience and adaptability in a volatile region. By capitalising on Djibouti’s strategic location, SeaLead is ensuring that critical trade routes remain open, even as many larger lines pull back from the region.
This case underscores the importance of regional players in maintaining trade flows, even in the face of significant geopolitical risks.
“This service is a strategic step forward, enhancing our capabilities in China, India, and East Africa. By leveraging Djibouti’s crucial maritime hub, we are providing greater coverage and ensuring faster, more reliable connections for our customers, solidifying SeaLead’s role in shaping global trade.” – Suleyman Avci, CEO, SeaLead
Need reliable shipping solutions through volatile regions? Partner with SeaLead and Ocean Network Express for uninterrupted connectivity and strategic maritime solutions in the Red Sea and beyond.
