Ship loading POSCO steel coils was hijacked by pirates

The villains, off the coast of Somalia, hijacked a ship carrying steel coils from POSCO, a Korean manufacturer that does business through Samsung.

The products on board the Maltese-flagged vessel Ruen (41,607 dwt) were destined for a number of Turkish buyers. According to market sources, there are about 40 thousand tons of steel coils on board. The company is negotiating with pirates to free the bulk carrier.

As Argus notes, on December 13, Ruen was en route to the port of Gemlik in Turkey. It entered the risk area in the Gulf of Aden/southern Red Sea on 15 December. The bulk carrier has been off the central coast of Somalia since December 18 (according to ship tracking programs).

A spokesman for West of England Insurance Services noted that they are working closely with the relevant authorities and cannot provide further comment at this time.

Sources at Turkey's steel mills believe the incident could disrupt supplies from Asia to the region, which will support steel coil prices. Traders and Turkish buyers suggest shipowners and charterers may try to avoid the Red Sea/Suez Canal route by taking the longer and more expensive route around the Cape of Good Hope and along the east coast of Africa. This will also affect the cost of sailing in the Mediterranean region.

Shipping through the Red Sea and Suez Canal has already been complicated by recent attacks on container ships. Some carriers have said they will also bypass the Cape of Good Hope, adding to costs and transit times. One of the traders noted that some steel plants will stop selling steel on CFR (Cost and Freight) terms, placing the risk on buyers. In addition, there is a possibility that European buyers who have materials at sea and plan to receive quota before 1 January 2024 may experience delays in shipments.