In the Red Sea region off the coast of Somalia, a ship carrying steel coils from Korean steelmaker Posco (the company does business through Samsung) was hijacked by pirates.
Source. This was reported by CTS with reference to MMC Center.
The products on board the Maltese-flagged Ruen vessel were intended for Turkish buyers.
According to market sources, the vessel is carrying about 40 thousand tons of steel coils.
The company is negotiating with the pirates to free the bulk carrier.
As of December 13, the Ruen was on its way to the port of Gömlik in Turkey. It entered the risk zone in the Gulf of Aden in the southern Red Sea on December 15. According to ship tracking programs, the bulk carrier has been off the central coast of Somalia since December 18.
A representative of West of England Insurance Services said that they were cooperating with the relevant authorities and could not comment at this time.
Sources at Turkish steelmakers believe that the incident could disrupt supplies from Asia to the region, which would push up prices for coiled steel.
Traders and Turkish buyers speculate that shipowners and charterers may try to avoid the Red Sea and Suez Canal route by choosing a longer and more expensive route around the Cape of Good Hope and along the east coast of Africa. This will also affect the cost of sailing in the Mediterranean region.
As reported, transportation companies have begun to redirect ships from the Middle East region amid more frequent attacks in the Red Sea and Gulf of Aden. Some companies are trying not to send ships to the region at all, instead choosing a route around Africa, which increases the travel time by two weeks.
Risks to shipping in the Red Sea and the Bab el-Mandeb Strait, through which about 10% of the world's maritime oil supplies pass, have increased amid Israel's war with Hamas. The Yemeni Houthis have expressed their support for the Palestinians and have been attacking ships in the strait.