WSC appoints Soren Toft and Randy Chen as new chair and vice chair
MSC boss Soren Toft and Randy Chen, vice chairman of Wan Hai, have become chair ...
FDX: ABOUT USPS PRIVATISATIONFDX: CCO VIEWFDX: LOWER GUIDANCE FDX: DISRUPTING AIR FREIGHTFDX: FOCUS ON KEY VERTICALFDX: LTL OUTLOOKGXO: NEW LOW LINE: NEW LOW FDX: INDUSTRIAL WOESFDX: HEALTH CHECKFDX: TRADING UPDATEWMT: GREEN WOESFDX: FREIGHT BREAK-UPFDX: WAITING FOR THE SPINHON: BREAK-UP ALLUREDSV: BREACHING SUPPORTVW: BOLT-ON DEALAMZN: TOP PICK
FDX: ABOUT USPS PRIVATISATIONFDX: CCO VIEWFDX: LOWER GUIDANCE FDX: DISRUPTING AIR FREIGHTFDX: FOCUS ON KEY VERTICALFDX: LTL OUTLOOKGXO: NEW LOW LINE: NEW LOW FDX: INDUSTRIAL WOESFDX: HEALTH CHECKFDX: TRADING UPDATEWMT: GREEN WOESFDX: FREIGHT BREAK-UPFDX: WAITING FOR THE SPINHON: BREAK-UP ALLUREDSV: BREACHING SUPPORTVW: BOLT-ON DEALAMZN: TOP PICK
As instability rises in the Middle East, the Israel-Palestine war now threatening to encompass Iran, a parallel escalation occurred in the Red Sea over the weekend, with MV Aries seized by Iranian marines and Somali pirates netting a $5m ransom for the release of MV Abdullah.
Footage from the deck of the 15,000 teu Madeira-flagged vessel Aries, chartered by MSC, shows Iranian Revolutionary Guard troops rappelling from a helicopter onto the deck. The incident may mark the outset of direct military involvement by Iran, which until now has operated through its proxies, the Houthis and Hezbollah.
Iranian sources claim the vessel is “linked to Israel”, in particular to billionaire Eyal Ofer, chairman of UK-based Zodiac Maritime, recorded as the ship’s owner by vesselvalues.com.
According to the eeSea liner database, the vessel is deployed on MSC’s standalone New Falcon service between Asia and the Middle East and was understood to have departed Dubai on the backhaul leg.
White House National Security Council spokesperson Adrienne Watson demanded the safe release of MV Aries’ Indian, Filipino, Pakistani, Russian and Estonian crew, calling the attack “an act of piracy” and “blatant violation of international law” by a “designated foreign terrorist organisation”.
She added: “It must be condemned unequivocally, and we will work with our partners to hold Iran to account for its actions.”
The International Chamber of Shipping (ICS) advised ships transiting the region should “conduct a thorough threat assessment and liaise closely with military forces to ensure they are fully protected against further possible aggression by Iranian forces”.
Secretary general Guy Platten added: “This reprehensible attack against a merchant ship once again places innocent seafarers on the front lines of geopolitical conflict.
“Our thoughts are with the 25 seafarers who are now captives of Iran, and with the families who are now in fear of their loved ones’ safety. Iran must release the ship as a matter of urgency.”
The hijacking occurred shortly before the massive salvo of Iranian drones and missiles was aimed at Israel on Saturday night, in retaliation for an Israeli airstrike that blew up the Iranian consulate in Damascus earlier this month. With 99% of the 300 slow-moving projectiles shot down, the move was described by Iran as a deliberately strategically ineffective “slap”, intended to serve as warning against further escalation by Israel.
Elsewhere, Somali pirates freed Bangladesh-flagged bulk carrier Abdullah, hijacked last month, indicating that the $5m ransom had been paid.
Pirate Abdirashiid Yusuf told Reuters: “The money was brought to us two nights ago, as usual… we checked whether the money was fake or not… then we divided the money into groups and left, avoiding the government forces.”
An International Maritime Bureau (IMB) report last week documents two reported hijackings by Somali pirates in Q1. It said: “In addition, one vessel each was fired upon, boarded and reported an attempted approach. These incidents were attributed to Somali pirates who demonstrate mounting capabilities, targeting vessels at great distances from the Somali coast.”
The successful extortion of a ransom has stoked shipping fears of a revival of Somali piracy. Lars Jensen, CEO of Vespucci Maritime, said in a LinkedIn post yesterday: “As long as piracy pays off, we will see more of it,” adding that the payout “…should be seen in the context of an average annual income in Somalia of just $600.
“The ransom therefore corresponds to the annual income of more than 8,000 people – it is not hard to see why some would see piracy to be worth the risk… although the bulk of the money likely goes to organisers on land, and not the actual pirates on the skiffs who take the physical risk.”
Listen to the latest episode of The Loadstar Podcast to hear industry experts discussing global supply chain updates in more detail:
Comment on this article