Although QatarEnergy has yet to issue a formal statement as to the rerouting of its fleet, sources say the company is seeking out security advice on passage (“Cargo ship hit by missile in Red Sea after new US attack on Houthis”, Report, January 17).
The cautious approach taken by fleet managers is perfectly in line with what lawyers and security professionals recommend doing in these circumstances: stay informed, consider the arcane world of geopolitics a part of your business, be prepared to negotiate on different fronts, develop negotiation skills within your own company, and minimise risk for as long as possible.
At present, based on the prevailing reading of Article 44 of the UN Convention on the Law of the Sea, the right of passage in the Red Sea’s Bab-el-Mandeb strait is probably not hampered to an extent that could be interpreted as an act of war. However, the current environment in the Red Sea is heated to say the least.
It has been clear since the very beginning — when part Israeli-owned car carrier Galaxy Leader was hijacked — that we are dealing with sophisticated and determined paramilitary organisations. Indeed, many shipping operators are tempted to take the easiest way out and simply avoid the Suez Canal altogether.
The liquefied natural gas market — already reeling from the sanctions against Russia — could well be in for even further adverse conditions, with a substantial increase in prices and difficulties in ensuring timely supplies.
Enrico Vergani
Partner and Lead on Shipping, Transport & Logistics, BonelliErede (lawyers) London EC4, UK
