Swiss company MSC Mediterranean Shipping Co will stop using the Suez Canal following an attack on one of its ships, the world's largest container shipping company announced on Saturday (December 16th), while French shipowner CMA CGM ordered its crews to avoid the waterway.

In recent weeks, Yemen's Iranian-backed Houthi movement has attacked ships in the Red Sea, a crucial route that allows east-west trade, including oil, to pass through the Suez Canal to avoid the extra time and expense of bypassing Africa.

According to the Houthis, the Liberian-flagged MSC Palatium III vessel was attacked by a drone on Friday in the Bab al-Mandab Strait at the southern end of the Red Sea.

No injuries were reported, but the ship suffered damage from the fire and was taken out of service, MSC said in a statement. Another Liberian-flagged ship, the Al-Jasrah, was hit by a missile, which also sparked a fire, according to the U.S. military.

Marseille-based shipping giant CMA CGM said in a statement sent to Reuters that it had taken "increased preventive measures in recent days to ensure the safety of (its) ships and their crews navigating in these waters" as "the situation continues to deteriorate and safety concerns increase".

"We have therefore decided to order all CMA CGM container ships in the region that have to pass through the Red Sea to reach safe areas and to interrupt their journey in safe waters, with immediate effect and until further notice," said the French shipowner, which said it was taking "all necessary measures to preserve its transport services for its customers".

See alsoEco news: the attacks in the Red Sea, what are the risks for trade?

Ships to Israel

In recent weeks, the Houthis have stepped up attacks on ships and fired drones and missiles at Israel — they hit the Red Sea resort of Eilat on Saturday — in support of the Iranian-backed Palestinian Islamist group Hamas, which is fighting Israel in Gaza.

The Houthis, who rule over much of Yemen, have vowed to continue their attacks until Israel halts its offensive, but they said on Friday they were only targeting ships heading to Israeli ports. However, the Palatium III and another threatened MSC ship, the Alanya, have announced Jeddah, Saudi Arabia, as their destination, according to data from ship tracking and maritime analysis service provider MarineTraffic. Bab al-Mandab is one of the world's most important routes for the maritime transport of goods, especially crude oil and fuel from the Gulf to the Mediterranean via the nearby Suez Canal or SUMED pipeline, as well as goods destined for Asia, including Russian oil.

Read alsoDo Houthi rebels threaten global maritime trade?

The United Kingdom said on Saturday that one of its warships had shot down a suspected attack drone that was targeting merchant shipping in the region.

In response to the escalating attacks, Denmark's A.P. Moller-Maersk on Friday halted all container shipments through Bab al-Mandab until further notice, and German container shipping company Hapag Lloyd said it might do the same, hours after reporting that one of its ships, the Al Jasrah, had been attacked near Yemen.

MSC said it would redirect some services around the Cape of Good Hope, at the southern tip of Africa, which would lengthen the journeys of ships that had to pass through the Suez Canal by several days.

With Reuters

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