Transport Ministry closely monitoring Red Sea situation

KLANG: The Transport Ministry is closely monitoring the situation in the Red Sea, says Anthony Loke.

The Transport Minister said they had yet to receive any negative feedback directly from Malaysian exporters and importers.

“We hope this (situation) is just for the short term. It is very fluid.

“There are efforts from other countries to have better security control there. Anyway, we are monitoring the situation,” he said at a press conference after an event here on Friday (Jan 19).

Loke said they would also speak with industry players from time to time to see if any mitigation efforts are required.

According to reports, major shipping companies have stopped using Red Sea routes and the Suez Canal since December.

This is due to the Houthi group from Yemen targeting vessels in response to Israel’s war on Hamas in Gaza. The attacks have cut off access to the Suez Canal – the shortest shipping route between Asia and Europe.

This has forced shipping companies to take a longer and safer route across South Africa’s Cape of Good Hope.

The Red Sea serves as the entry point for ships using the Suez Canal, which was opened in 1869.

It is one of the busiest canals globally, accounting for approximately 12% of global trade and playing a vital role in the movement of goods between Asia and Europe, with 23,583 ships using the Suez Canal in 2022.