IMO condemns Red Sea shipping attacks, warns of supply chain risks

The International Maritime Organisation (IMO) Secretary-General Arsenio Dominguez has condemned recent attacks on shipping in the Red Sea, describing them as “indefensible” and highlighting the risks they pose to seafarers and global supply chains. Dominguez’s remarks underscore the need for de-escalation in the region, following a series of incidents that have raised concerns about potential disruptions to maritime operations. The Bab el-Mandeb Strait, a crucial maritime chokepoint, is at the center of these concerns, with market pricing suggesting increased expectations of its potential closure. The Bab el-Mandeb Strait closure market reflects a heightened awareness of the situation’s gravity. Currently, the market prices a 23% likelihood of the strait being effectively closed by September 30, up from 22% a week ago. The IMO’s statements appear to have reinforced perceptions of escalating risks, as seen in activity over the past 24 hours. The December 31 market shows the highest likelihood at 34.5%, indicating concerns about prolonged instability. Recent developments have also led to increased insurance costs for shipping through the southern Red Sea, doubling in a single day. Th...