A Japanese-chartered vessel seized in the Red Sea by Iran-backed Houthi rebels is raising fears that the Israel-Hamas war could lead to shipping disruptions in the region.
Tokyo-based Nippon Yusen KK said the Galaxy Leader, a vehicle carrier that it chartered, was taken in the southern part of the Red Sea on Sunday. The firm is unaware of where the vessel currently is located and is waiting for official reports from the ship’s UK-based owner company, a spokesperson said.
While the Galaxy Leader is registered in the UK, the vessel is owned by Israeli businessman Rami Ungar, according to a person familiar with the matter, who asked not to be identified, citing the sensitivity of the matter.
Israeli Prime Minister Benjamin Netanyahu’s office condemned the seizure. A spokesperson for the Houthi group said on Sunday that it would continue to target Israeli ships until the military operation against Hamas ends.
The incident raises concerns over the risks in one of the world’s busiest shipping routes. While the impact of the Middle East conflict has been limited to congestion at Israeli ports, the action in the Red Sea represents a “significant escalation of tensions” in the wider region, said Kenneth Loh, a Bloomberg Intelligence analyst covering shipping and logistics.
“Some shipping companies may decide to circumvent the region for safety reasons, which means additional costs and delays,” he said. “This could lead to a knock-on effect across global supply chains reminiscent of pandemic-era congestion and supply-chain chaos.”
Japanese trade minister Yasutoshi Nishimura said the Red Sea route is used for transporting diverse goods and issues there could affect the nation’s economy. He said while there isn’t an immediate impact, Japan is watching for any effect to supply chains and inflation with a sense of urgency.
The Japanese government is currently gathering information through related ministries and agencies, Chief Cabinet Secretary Hirokazu Matsuno said on Monday. The country is engaging with the Israeli government as well as the Houthi group, Saudi Arabia, Oman and Iran to work toward the release of the vessel, he said.
The vessel has a crew of 25 members, from Bulgaria, Ukraine, Romania, Mexico and the Philippines, according to the Nippon Yusen spokesperson. The ship had unloaded its cargoes at a port in Turkey and was headed to the Pipavav terminal on the coast of India, he said.
Nippon Yusen has not yet decided on measures for other vessels that may pass through the Red Sea region, the spokesperson said.