Finance
ADNOC shipping rules out quick return to Red Sea, CEO says
Published by Global Banking & Finance Review®
Posted on January 24, 2025
2 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 24, 2025
2 min readLast updated: January 27, 2026
Despite a Gaza ceasefire, Red Sea shipping risks persist, says ADNOC CEO. Companies reroute due to Houthi threats.
By Enes Tunagur
(Reuters) - Red Sea shipping remains risky despite the Gaza ceasefire and an announcement by Yemen’s Houthis to limit attacks, according to the CEO of Abu Dhabi National Oil Company's logistics and shipping arm.
Shipping executives remain cautious about a return to the Red Sea given the risk to seafarers, cargo and their assets. The Iran-backed Houthis have carried out more than 100 attacks on ships since November 2023, resulting in most shipping companies diverting vessels away from the Suez Canal to instead use the longer route around southern Africa.
"As we speak today, we cannot say it's almost completely gone, and it's a go ahead for all the fleet to go inside the Red Sea. As I said, there is a people side of it, so we cannot risk our people going there while there is maybe a fragile ceasefire now," ADNOC Logistics & Services CEO Abdulkareem Al Masabi told Reuters.
Danish shipping company Maersk said on Friday it would continue to reroute around Africa via the Cape of Good Hope until safe passage through the Red Sea and Gulf of Aden area was ensured for the longer term.
The Houthis will limit their attacks on commercial vessels to Israel-linked ship provided the Gaza ceasefire is fully implemented, although they have conditioned their halt in attacks on U.S. or UK linked shipping with various provisos, which has added to caution on any return, shipping and insurance sources say.
The Houthis on Wednesday freed crew of the Galaxy Leader, a vessel that the militant group seized more than a year ago. And Washington this week designated the Houthi movement as a "foreign terrorist organization", which is likely to add to fresh tensions with the militia.
(Reporting by Enes Tunagur; additional reporting by Jonathan Saul)
The article discusses the ongoing risks of shipping in the Red Sea despite a ceasefire and the impact of Houthi attacks.
Companies are avoiding the Red Sea due to the risk of Houthi attacks, opting for longer routes around Africa.
ADNOC's CEO advises caution and highlights the risks to seafarers and assets despite the ceasefire.
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