Photo by: Bloomberg
Australian mining giant BHP Group said on Thursday that the Red Sea disruptions are forcing some of its freight service providers to take alternative routes, such as Africa's Cape of Good Hope, while others still prefer the Red Sea with additional controls.
"The Red Sea is one of the key shipping routes in the world, however, the majority of BHP's shipments do not go through this route," and there have been no major business disruptions so far, the world's largest listed miner said in a statement.
The move follows reports from companies such as oil major BP and Shell that have paused transits through the Red Sea as strikes on commercial vessels by the Iran-aligned Houthis have stymied trade between Europe and Asia.
Some shipping companies have instructed vessels to re-route ships via Cape of Good Hope to reach the West, a slower and, therefore, more expensive route.
The Wall Street Journal earlier reported that BHP is diverting almost all of its shipments from Asia to Europe away from the Red Sea.
BHP generated $1.96-billion in revenue from Europe in 2023, around 3.6% of its total revenue of $53.82-billion.