Houthi attacks disrupt vital shipping routes

Attacks on vessels in the Red Sea by Iran-aligned Houthis have disrupted a shipping route vital to east-west trade, with prolonged rerouting of shipments pushing freight rates higher and causing congestion in Asian and European ports.

The Red Sea, an essential conduit for international commerce, is becoming more susceptible to assaults perpetrated by Yemen's Houthi insurgents. The targeting of commercial vessels in these attacks has raised concerns about the safety of the region's maritime activities and presents substantial risks to global supply lines.

Houthi harassment to international maritime business in the Red Sea has aroused global concerns about the safety of the region's marine activity and presents considerable hazards to global supply chains.

Yemen has been embroiled in a violent civil war, with the Houthis—who get substantial financial and military backing from Iran, battling against Yemen's internationally recognized government and a coalition commanded by Saudi Arabia.

The war has been going on for almost a decade and has resulted in the death of over 377,000 individuals, according to the United Nations. 

The majority of these deaths were caused by starvation, contaminated water, and inadequate medical care, all of which were exacerbated by the ongoing fighting. The level of violence decreased after a ceasefire was negotiated by the United Nations in 2022.

To avoid the Bab el-Mandeb Strait, the Red Sea and the Suez Canal, shipping companies have opted for the alternative route via the Cape of Good Hope which increases the length of the voyage from Asia to northern Europe and the eastern Mediterranean to 11,800 nautical miles in a 36-day journey, adding 3,000 nautical miles and 10 days, respectively, by disrupting the initial shortest shipping chain connecting Shanghai, China, to the Dutch port of Rotterdam. This long swing around Africa became practically obsolete with the opening of the Suez Canal over 150 years ago.

The majority of the world’s leading container-shipping corporations, such as Maersk from Denmark, Hapag-Lloyd from Germany, and Cosco from China, have ceased transporting goods via the Red Sea.

This crisis has occurred at an inopportune moment for the global shipping industry, which is in the midst of a slump due to stagnant global industrial output and the return of consumer demand to pre-pandemic levels.