Ocean Shipping
A Chinese foreign ministry statement read “China calls for an end to harassment of civilian ships and maintenance of the safety of waterways in the Red Sea, and is willing to continue to play a constructive role in this regard,”
China is by far the most important trading partner for Iran, which is widely believed to be providing support for the Yemen based Houthi Rebels.
Over 100 vessels have been attacked in the Red Sea and surrounding areas since November, which led to the majority of ocean freight carriers diverting vessels around the Cape Of Good Hope instead of through the Suez Canal.
The impact of these diversions are now being felt, with the Asian ocean freight market in chaos due to a lack of space, a severe shortage of equipment, and more recently widespread port congestion. Ocean freight rates are now spiralling out of control, which is having a major impact on exports from China.
It is now hoped that China's influence with Iran can be used to apply pressure and help to bring an end to the attacks on commercial shipping.
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