Introduction:
The Red Sea, nestled between Africa and Asia, is a captivating seawater inlet of the Indian Ocean. Its unique features and intriguing name have sparked curiosity and exploration for centuries. In this blog post, we delve into the origins of the Red Sea's name, its geographical significance, and the countries that share its shores.
The Red Sea's Geography:
To the south, the Red Sea connects to the Indian Ocean through the Bab el Mandeb strait and the Gulf of Aden. The northern boundaries are defined by the Sinai Peninsula, the Gulf of Aqaba, and the Gulf of Suez, leading to the famous Suez Canal. This geographical marvel separates the coasts of Egypt, Sudan, and Eritrea from those of Saudi Arabia and Yemen.
Why the Red Sea?
The Red Sea earns its title as the saltiest sea among those directly connected to the ocean, and remarkably, it lacks any river inflow. The intriguing question of why it's called the Red Sea has led to various hypotheses. One prevailing theory suggests the presence of cyanobacteria called Trichodesmium erythraeum, which imparts a reddish-brown hue to the normally blue-green water.
Countries Bordering the Red Sea:
The Red Sea's strategic location places it as a natural divider between nations. Egypt, Sudan, and Eritrea grace its northern shores, while Saudi Arabia and Yemen claim the southern coastline. The Gulf of Aqaba, an extension to the northeast, reaches into southern Israel and southwestern Jordan. The Red Sea holds within its borders some of the warmest and saltiest seawater on the planet.
Alternative Names:
Throughout history, the Red Sea has been assigned alternative names, adding to its mystique. Maps depicting the north-western part of the Indian Ocean may refer to the Red Sea as the "Arabian Gulf." The term "Erythraean Sea" has also been historically used, specifically to denote some gulfs attached to the Indian Ocean, such as the Gulf of Aden and the Gulf of Oman.
Trade Impact:
The Indian Ministry of Commerce and Industry stated that about 80 percent of all goods exports to Europe are sea-based voyages through the Red Sea region. China, which relies on shipping for 95 percent of its exports, has a strong economic interest in securing Red Sea shipping lanes. According to International Monetary Fund data as of January 22, 2024, the seven-day rolling average of Bab al-Mandab passages has dropped to 46 percent compared to the same period last year. Suez Canal passages are at 63 percent compared to the previous year, while Cape of Good Hope passages are up 70 percent. The increase in ship diversions increases fuel and labor costs while decreasing the average amount of cargo traffic reaching its destination,
Why the reluctance from insurance companies to provide insurance in red sea:
Instability caused by the Houthi attacks on ships —which involve advanced equipment such as drones and missiles - in the Gulf of Aden and the Red Sea, an obligatory route for vessels transiting the Suez Canal. The significantly heightened risk of attack has caused shipping companies to reconsider transiting the Suez Canal via the Red Sea. Maersk, one of the world’s leading shipping companies, is one of many firms that have chosen to indefinitely suspend their Red Sea routes.
Conclusion:
As we conclude this exploration, higher-value shipping is most impacted with diversions to the Cape of Good Hope caused by skyrocketing insurance rates. The attacks themselves are unlikely to be resolved soon, and hence insurer also continue to have cautious approach offering Insurance via Red Sea Route.