Houthi attacks: Hundreds of ships to reroute from Red Sea, 44% cost spike for China
The Red Sea is one of the world’s most important shipping routes for oil, fuel and consumer goods, and shipments between Asia and Europe typically go through the sea and the Suez Canal.
More shipping and freight companies said on Thursday that they would avoid the Red Sea, and hundreds of vessels were rerouted following attacks on ships by Yemen’s Iran-backed Houthi militia, which has disrupted global trade and led to a US-established naval task force in the region.
On Thursday, more than 100 container ships rerouted from the Red Sea, instead adding at least 10 days and 6,000 nautical miles onto the journey by circumnavigating South Africa’s Cape of Good Hope, leading to higher costs and higher emissions. Germany’s Hapag-Lloyd and Hong Kong’s OOCL said Thursday they would avoid the Red Sea. Hapag-Lloyd said it would reroute 25 ships by the end of the year from the key waterway, hitting global supply chains.
The Red Sea is one of the world’s most important shipping routes for oil and fuel as well as for consumer goods, and shipments between Asia and Europe typically go through the sea and the Suez Canal. The Suez Canal is a vital trade route between Asia and Europe and for oil tankers carrying crude from the Middle East to Europe. The chokepoint accounts for 12% of all global trade.
For years, Houthi rebels, which control much of Yemen, have attacked ships traversing through the Bab el-Mandeb Strait at the opening of the Red Sea, mainly focusing on Saudi and Emirati vessels. Since the Israel-Hamas war started on Oct. 7, the attacks have increased. The rebels have said they are targeting Israel-owned vessels and ships traversing to and from Israeli ports in response to their invasion of Gaza. However, earlier this week, the Houthis claimed responsibility for drone attacks on two ships in the Red Sea with no known relation to Israel.
