Red Sea Crisis Forces Royal Caribbean And MSC To Scrap Certain Planned Voyages: Report

Royal Caribbean Cruises Ltd RCL has reportedly canceled two voyages to bypass the Red Sea due to aggression on ships by Houthi militia.

A ship from Muscat to Dubai was originally planned from January 16 to 26, and another from Dubai to Mumbai was slated for January 26 to February 11, Reuters reported.

Last week, the cruise itinerary between Aqaba and Muscat was altered by Royal Caribbean to disembark guests in a port city near Athens, the report read.

“Our global security team continues to closely monitor the situation in the region and we will make additional changes if required,” Royal Caribbean said, Reuters noted.

MSC Cruises, the Swiss-Italian operator, announced the cancellation of three April trips from South Africa and the United Arab Emirates to Europe due to the Red Sea crisis, according to the report.

Meanwhile, global cruise company Carnival Corporation CCL  stated that its global security team collaborated with experts and governments to prioritize safety, adjusting itineraries if required in response to the evolving situation, the report read.

The Red Sea crisis has been a cause for concern in recent weeks. The crisis was further exacerbated by the seizure of a U.S.-controlled tanker by Iran, which led to a sharp increase in oil prices. 

The situation escalated to the point where the U.S. reclassified the Houthi rebels as terrorists after their second attack on an American-operated ship in the Red Sea. This move is expected to have a significant impact on global trade.

Read Next: Jim Cramer Warns Houthi Assault In Red Sea Could Impede Fed’s Fight Against Inflation, Advises Investors To Be Cautious

Price Action: RCL shares closed higher by 2.34% to $125.28 on Thursday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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