Webinar Addresses Impact of Red Sea Crisis on Maritime Security

The webinar titled “Navigating the Red Sea: A Comprehensive Analysis of Maritime Security” was organized by the SSA to provide a comprehensive analysis of the ongoing Red Sea crisis and its potential impacts on maritime security and to inform the industry about the current situation in the Red Sea, associated safety concerns for merchant ships, and strategies for navigating these challenges to ensure maritime security in the region. The event held on 26^th January 2024 brought together ship owners, operators, captains, crew members, maritime security professionals, government officials responsible for maritime security, port authorities, and representatives from relevant international organizations.

The Red Sea is the shortest sea route linking Asia and Europe. It is a major Sea Line of Communication (SLOC) carrying approximately 12% of global trade and 30% of global container traffic. Disruptions to this SLOC will have an impact on global supply chains. The Houthi militia’s military capabilities pose a significant threat in the region, causing a 40% decrease in maritime traffic. As of 9 Jan 2024, Yemen-based Houthi forces have unlawfully attacked about 20 merchant ships in the Red Sea with missiles and drones including Singapore-flagged vessel MAERSK HANGZHOU. These attacks have increased business costs, as ships have been rerouted around southern Africa to avoid the Red Sea.

The webinar delved into several key topics regarding the Red Sea crisis and maritime security, featuring experts from Risk Intelligence, Information Fusion Centre (IFC) and North Standard. Firstly, it highlighted current security threats in the Red Sea, offering insights from the latest risk assessments, analyzing recent incidents and trends, and presenting recommendations for mitigating risks. Secondly, it discussed maritime security coordination efforts and information-sharing mechanisms, including the deployment of the International Maritime Security Construct (IFC) to Combined Task Force 153 (CTF 153) and related initiatives. Lastly, it explored risk management and insurance considerations in Red Sea operations, including an overview of insurance considerations, trends in claims, case studies, and risk mitigation strategies from an insurance perspective.

During an interactive online poll conducted during the event, industry participants expressed concerns about the impact of the Red Sea crisis on shipping operations, safety of crew members, and the need for enhanced maritime security measures in the region. 40% of attendants believed the present security presence is inadequate in the Red Sea, compared to 18% who said they were adequate. 82% were concerned about waters off Somalia being another potential security development and 33% of attendants wanted more frequent advisories, 41% wanted security escort to be provided and 22% wanted more knowledge transfer (e.g. webinars, seminars) in order that regulatory bodies could do more to assist shipowners in the current situation. There was a consensus among participants on the importance of proactive risk management and cooperation among stakeholders, to ensure safe navigation and mitigate security risks in the Red Sea.

Maritime incidents in the Red Sea and Gulf of Aden have become increasingly concerning over the past few months, as noted by Mr Jim Pascoe, Chief Commercial Officer, Risk Intelligence. “Despite military intervention, there have been over 30 incidents, indicating a dynamic situation with evolving trends in insurgent activities, naval operations, and suspicious behavior, it is therefore important that information sharing and government asset deployment work hand in hand to address security challenges effectively,” he said.

LTC Daniel Ng, Information Fusion Centre (IFC), shared that as part of ongoing international efforts to keep the Red Sea open and safe, Singapore will contribute to Operation Prosperity Guardian under the Combined Task Force 153, one of the five task forces under the 39-nation Combined Maritime Forces (CMF), including a team from the Republic of Singapore Navy (RSN) Information Fusion Centre to support info-sharing and engagement outreach with the commercial shipping community. Additional efforts to enhance maritime security include real-time information sharing initiatives between Singapore and the Maritime and Port Authority of Singapore (MPA) to mitigate piracy risks in the Gulf of Aden.

However, navigating through conflict zones like the Red Sea and Gulf of Aden requires careful consideration of insurance coverage and contractual obligations, as deviations without proper justification may impact liability coverage for ship owners.

If you missed the webinar, you can check out our past recording on our past events page if you have a membership account.