Evergreen said December 18 it was suspending journeys in the region “until further notice” due to “rising risk and safety considerations.” The announcement brings to five the number of major shipping lines that have dropped service in the region.

The Mediterranean Shipping Company (MSC), announced December 17 it is diverting its ships away from the Red Sea because of an increased threat of attacks from Iranian-backed Houthi rebels in Yemen, targeting ships traveling to Israel.

BBC News reports that French company CMA CGM took a similar step on December 16, one day after Maersk and Hapag-Lloyd suspended Red Sea journeys.

Orient Overseas Container Line (OOCL) announced December 16 it will no longer accept cargo going to and from Israel, with immediate effect until further notice, "due to operational issues."

Read More: BP Suspends Oil and Gas Shipment through Red Sea

Global freight can expect to see rate increases, rerouting and longer transit times, as the U.S. forms an international task force to restore security to the waterway and sanctions to disrupt Houthi funds, according to Judah Levine, Head of Research at logistics company Freightos.

Levine says the disruption is different to the blocking of the Suez Canal in 2021, because of the current excess capacity available to address the disruption. "In 2021 there were no extra available ships to take the place of delayed vessels at origin ports. This time there is a record level of excess capacity," Levine said in a December 18 statement. "So shippers could expect longer lead times due to longer voyages, but operations should continue reasonably well. Freight rates will likely increase on these longer voyages too, but due to carriers looking for ways to utilize excess capacity, it is unlikely that rates will spike to levels experienced during the pandemic."

The Houthis have declared their support for Hamas after Israel launched a military campaign in Gaza following the October 7 Hamas attack. 

The Houthis have been stepping up their attacks, using drones and rockets against foreign-owned vessels. They have also been firing drones and missiles towards Israel. The U.S. said on December 16 its guided-missile destroyers had shot down 14 Houthi drones in the Red Sea. 

In its announcement, MSC said the situation in the area had become "serious." It said its container ship MSC Palatium III was attacked on December 15 as it was transiting the Red Sea. There were no injuries to the crew, but the ship had been taken out of service.

Ships are now being re-routed via the Cape of Good Hope at the southern tip of Africa.

In its statement, CMA CGM — the world's third-largest shipping company — said it had instructed all its container ships there "to reach safe areas and pause their journey in safe waters with immediate effect until further notice." 

Maersk, the world's second-biggest shipping firm, has described the situation as "alarming."

Read More: Two Cargo Ships Attacked by Houthis in Red Sea

The four companies that have now suspended operations in the area comprise four of the top five in the world. Shipping experts say the decisions are going to be costly. 

About 17,000 ships and 10% of global trade pass every year through The Bab al-Mandab strait, also known as the Gate of Tears, which is only 20 miles (32km) wide.