CNBC published on 8 January 2024 an article titled "China's Largest Shipper Reportedly Suspends Trips to Israel as Red Sea Tensions Mount" by Lee Ying Shan.
Israeli state media reported that Chinese state-owned shipping giant COSCO suspended shipping to Israel through the Red Sea as tensions rose due to continued attacks on shipping by Iran-supported Houthis in Yemen. Orient Overseas Container Line (OOCL), which is part of the COSCO Shipping Group, also suspended sailing to the Red Eas and stopped accepting Israel-bound cargo since December.
The timing of this information is curious in that Ships Go blog reported on 19 December 2023 a "List of Ships Affected on the Red Sea Route." It identified 177 ships that rerouted because of Houthi attacks on Red Sea shipping. Included on the list are a number of COSCO and OOCL vessels. It would appear that COSCO and OOCL began avoiding the Red Sea well before this most recent announcement.
This also raises a question as to the role of the Chinese Navy's 45th anti-piracy Escort Task Force in the Gulf of Aden/Red Sea. As of 20 December, all three Task Force ships--the destroyer Urumqi, frigate Linyi, and supply ship Dongpinghu--were reportedly berthed at the Chinese naval base in Djibouti. They were not protecting Chinese or any ships in the Red Sea on that date.
All of this suggests that Chinese shipping companies are concerned their substantial traffic through the Suez Canal and Red Sea is at risk in spite of China's good relations with Iran and contacts with Houthis in Yemen. The Houthis have attacked ships associated with many different countries flying a wide variety of flags. In fact, one wonders if the Houthis have any idea about the origin of the ships they are attacking. In spite of the significantly higher shipping costs around South Africa, Chinese companies are probably wise to avoid the Red Sea, especially if the PLAN's 45th Escort Task Force remains docked at Djibouti.
