Houthi Militia’s Missile Attacks on Red Sea Shipping Pose Global Supply Chain Threat
In the latest incident on December 15th, the Liberian-flagged container ship Al Jasrah, operated by Hapag-Lloyd, came under a missile attack in the Red Sea, resulting in damages, a deck fire, and a container falling overboard. The attack follows a December 14th missile targeting the Maersk Gibraltar in the same region.
Maritime security firm Ambrey reported these incidents, raising concerns about the escalating threat to merchant ships passing through the Red Sea and Gulf of Aden by the Houthi militia, who claim these actions are in response to the conflict in Gaza.
Peter Sand, chief analyst at Xeneta, warns of potential severe consequences for global supply chains. He highlights the significance of the Suez Canal for over 50 vessels daily, emphasizing that any disruption, especially amid ongoing restrictions in the Panama Canal, could lead to rerouting and increased shipping costs.
Sand speculates on the potential rerouting around the Cape of Good Hope, adding up to 10 days to sailing times for services from Asia to North Europe and East Mediterranean. He suggests that depending on the scale and duration of Suez Canal disruptions, ocean freight shipping rates could surge by up to 100%.
The situation is exacerbated by Houthi threats against vessels transiting the Suez Canal, prompting concerns about its closure. While Sand believes an immediate closure is unlikely, he acknowledges the industry’s anxiety, recalling the impact of the Ever Given incident on the shipping sector.
As tensions rise and ships opt for alternative routes, the ocean shipping industry faces a critical juncture, navigating potential disruptions and increased operational costs.
