Australian mining giant BHP said that turmoil in the Red Sea is forcing some shipping companies to take alternative routes, such as the Cape of Good Hope, around Africa, while other companies still prefer the Red Sea with additional controls.
One of the largest mining companies in the world added in a statement: “The Red Sea is one of the main shipping routes in the world, yet the majority of BHP’s shipments do not pass through this route,” and there have been no major disruptions to business so far.
This follows reports from companies, such as major oil companies BP and Shell, which have temporarily stopped using the Red Sea, as Houthi attacks on commercial ships have disrupted trade between Europe and Asia.
Some shipping companies have instructed ships to avoid the Red Sea and use the Cape of Good Hope route to reach the west, which is a slower and therefore more expensive route.
Gerard Ang, head of the marine iron ore division at BHP, said during a special sector conference in Singapore earlier that about 320 million tons of bulk goods sail through the Suez Canal and the Red Sea, which represents seven percent of merchandise trade. Global dry bulk.
He added that in the short term, there may be pressure on cargo supplies in the North Atlantic market, making the dry bulk shipping market more volatile.
The Wall Street Journal reported earlier that BHP Group is diverting almost all of its shipments from Asia to Europe, away from the Red Sea.
BHP achieved revenues of $1.96 billion from Europe in 2023, or about 3.6 percent of its total revenues, which amounted to $53.82 billion.