Ships rerouting around Africa as Houthi attacks choke Suez traffic
The war in the Gaza Strip and a retaliatory attack by Iranian-aligned Houthi militants in Yemen have caused chaos in what is among the world’s busiest shipping routes. As a result, most of the massive ships carrying 12 percent of global trade are turning course to avoid using the Suez Canal.
The attacks on passing ships by the Houthi militants at the Bab el-Mandeb, the southern approach to the Suez Canal, have led to major disruptions. Such attacks have forced companies to reroute their ships to avoid the area. According to Everstream Analytics, as much as 12 out of every 14 container ships, along with a large share of oil and gas tankers, have shifted their route southward.
As a result, the usual time for the delivery of goods has increased, with the detour adding up to a month to the time underway. This has led to a significant increase in costs and time for the shipping companies. Most of the world’s top 10 container shipping lines are refusing to make the journey through the Red Sea due to the attacks.
Israel’s Red Sea port in Eilat reported an 85 percent drop in activity due to the Houthi attacks. Many ships have turned off their signals in an attempt to throw off potential attackers, further complicating the extent of the situation.
The crisis has also led to an increase in insurance rates for ships sailing through the region. Rates for Israeli-linked ships have gone up as much as 250 percent, leading some insurers to refuse to cover them.
The U.S. has announced the formation of a global military coalition, Operation Prosperity Guardian, to escort tankers and other ships through the threatening waters. However, this has done little to quell fears from global shipping companies.
The situation has drawn comparisons to the 2021 grounding of the Ever Given, a Japanese-owned container ship that got stuck in the Suez Canal, causing a major disruption to global trade. While the impact of the Houthi attacks may not be as immediate, the effects could be more enduring.
The chaos at one of the world’s busiest shipping choke points poses a significant threat to international commerce. The uncertainty and challenges posed by the Houthi attacks could continue to impact global trade in the coming weeks and months.
Source: The Washington Post