Several shipping operators along with various oil companies such as Shell, BP, and Norway's Equinor, have been bypassing the Bab el-Mandeb strait in recent times. The strait, a critical maritime chokepoint linking the Red Sea to the Gulf of Aden, has become a hotbed for geopolitical tension. Concerns continue to build over the safety and security of routes through the area, catalyzing a strategic shift in shipping and oil transportation strategies by these multinational corporations.
1. Several shipping operators and oil companies such as Shell, BP, and Norway's Equinor have been avoiding the Bab el-Mandeb strait due to rising geopolitical tension.
2. The strait is a critical maritime chokepoint linking the Red Sea to the Gulf of Aden and its safety and security have become a significant concern.
3. Despite the alert, these multinational corporations continue to use this risky route due to its importance as the fastest maritime link between Europe and Asia.
4. Piracy has substantially increased in the region prompting these companies to implement additional protective measures, incurring extra costs.
5. The additional costs due to safety protocols are often passed on to the consumers, but the strategic significance of the route in goods transportation continues to influence its usage.
In 2018 alone, an estimated 6.2 million barrels of oil per day passed through the Bab el-Mandeb strait.
Despite the evident dangers and the fact that these companies are some of the largest multinational corporations operating in the region, they still choose to traverse the risky Bab el-Mandeb passageway. The major concern in this region is piracy, which has significantly increased in recent years. This has prompted many of these companies to exercise increased caution and implement additional protective measures. Consequently, these operations incur substantial extra costs, which are often passed on to consumers. Nevertheless, this critical transit point provides the fastest maritime link between Europe and Asia, making it an essential route for the transport of goods, undeniably influencing its continuous usage despite the clear safety threats.