Tihama, a Maltese Flag container ship of shipping line Hapag-Lloyd, at a European dock on August 13, 2022.
Thierry Monasse | Getty Images News | Getty Images
BP has become the latest firm to pause travel through the Suez Canal following a series of attacks on vessels by Houthi militants from Yemen.
In a statement Monday, BP said the safety of its workers was its priority.
“In light of the deteriorating security situation for shipping in the Red Sea, bp has decided to temporarily pause all transits through the Red Sea,” it said. “We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region.”
It comes after shipping giants MSC, Hapag-Lloyd, CMA CGM and Maersk all announced a suspension of travel through the Red Sea due to the drone threat, meaning no access to the key link between Europe and Asia between the Middle East and North Africa.
Analysts say the move could cause a major shock to global supply chains.
“You are going to see some fairly seismic activity in terms of the implications for supply chains” if all current and expected reroutings are sustained, Richard Meade, editor in chief at shipping journal Lloyd’s List, told CNBC Monday.
This is a developing news story and will be updated shortly.
Read More: Oil major BP becomes latest to pause Red Sea shipments, with global supply chain in focus