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Red Sea attacks push global firms to seek overland shipping alternatives

An Israeli company is sending goods overland from the United Arab Emirates through Saudi Arabia and other firms are looking at different arrangements as US strikes fail to deter Houthi attacks.
ISMAILIA, EGYPT - JANUARY 10: A ship transits the Suez Canal towards the Red Sea on January 10, 2024 in Ismailia, Egypt. In the wake of Israel's war on Gaza after the October 7 Hamas attack on Israel, Houthi rebels in Yemen pledged disruption on all ships destined for Israel through the Red Sea's Suez Canal. The disruption on world trade is evident in the number of companies using this container ship route - a 90 per cent decline compared to figures one year ago. (Photo by Sayed Hassan/Getty Images)

Some companies are working to bypass the Red Sea and ship overland through the Arabian Peninsula due to attacks by Yemen’s Houthi rebels.

Israeli software startup Trucknet Enterprise Ltd. is sending goods from ports in the United Arab Emirates and Bahrain overland via Saudi Arabia and Jordan to Israel, and then on to Europe. Cargo from India, China and other Asian countries has been sent along this route in recent weeks, Bloomberg reported.

Other companies are exploring alternatives to the Red Sea. Reuters reported in December that the Swedish home appliance manufacturer Electrolux set up a task force to study alternative routes, while the French food company Danone told the outlet that it would explore different sea and road routes should the Red Sea situation continue.

Spokespeople for Electrolux and Danone did not immediately respond to Al-Monitor’s request for further details.

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