Denmark’s shipping industry, home to some of the world’s largest companies, agreed to double the salaries of crews sailing the Red Sea to offset the danger posed by recent attacks.
Hazardous living conditions benefit comes into effect for time spent in two defined high-risk areas in the regionaccording to an agreement presented on Friday by the Danish Shipping business group and the country’s three largest seafarers’ unions.
Many shipping companies are avoiding the Red Sea, where the Yemen-based Houthis have attacked ships supporting Hamas in the conflict with Israel.. But even ships with no direct ties to Israel have been attacked, and as the escalating war threatens global trade, a US-led task force is trying to bolster security in the key waterway.
Denmark’s AP Moller-Maersk A/S, the world’s second-largest container line, is one of the companies preparing to resume shipping across the Red Sea after initially sailing the long way south to Africa.to. Others are taking a more cautious approach: Shipping giant Hapag-Lloyd AG confirmed on Friday that it will continue to avoid the Red Sea and will review the decision on January 2..
Data this week showed that half of the container ship fleet that regularly transits the Red Sea and Suez Canal is avoiding the route. Detouring around Africa can take up to 25% longer than using the Suez Canal shortcut between Asia and Europe, increasing costs that can ultimately be passed on to consumers.. And it comes just as the other major trade shortcut, the Panama Canal, is suffering from a drought, adding to the potential economic risks.