By Al-Fassel | 2024-05-05

Carbon emissions from the container shipping industry have reached record levels as vessels take the longer route around the southern tip of Africa to avoid Houthi attacks in the Red Sea, new data show.

Container shipping emissions surpassed 100 points at a global level for the first time ever, according to new data in Xeneta's Carbon Emissions Index (CEI).

The CEI is based on average CO2 emissions per ton of cargo carried, with the baseline set in 2018. Any reading below 100 indicates an improvement in carbon efficiency, Maritime Executive reported April 24.

Emissions hit 107.5 points in the first quarter of this year on the CEI, Xeneta found. This marked a 15.2% increase from the last quarter of 2023.

The main cause of the significant increase in emissions is attacks by the Iran-backed Houthis in the Red Sea, which are forcing vessels to travel longer routes around the Cape of Good Hope.

The diversion resulted in the average distance a container ship travels increasing by 11% compared to the start of 2023.

"Ships are also being sailed at higher speeds in an attempt to make up time due to the longer distances, which again results in more carbon being burned," said Emily Stausbøll, Xeneta market analyst.

Another result of the disruptions is a trend towards using older vessels to maintain service schedules.

"Not only does this mean there are more ships burning more fuel, carriers have needed to bring in older, less efficient vessels to meet this additional demand," said Xeneta.

Threat to global economy

Attacks in the Red Sea have slowed trade and imperiled the global economy.

Transits of container vessels around the Cape of Good Hope climbed to new highs in mid-April. According to Lloyd's List Intelligence data, 802 vessels passed through, up from 670 the week prior.

Meanwhile transits through the Bab al-Mandeb strait totalled 221 in mid-April, down 60% on normal volumes, it said.

Shipping traffic through Egypt's Suez Canal plunged by 66% from mid-December to the beginning of April, according to the United Kingdom's Office for National Statistics.

At least seven incidents have been recorded in the southern Red Sea and the Gulf of Aden since April 24, breaking a weeks-long lull, AFP reported.

The United States in December announced a maritime security initiative to protect Red Sea shipping from Houthi attacks. Since January, the United States and Britain have launched repeated retaliatory strikes on Houthi targets in Yemen in response to the attacks.

The European Union in February launched the Aspides naval mission to protect merchant vessels in the Red Sea.