HOUTHI attacks on commercial vessels in the Red Sea led to a 90 per cent decline in container shipping through the area between December 2023 and February 2024, US intelligence officials said in their first formal assessment of the rebel campaign’s economic impact.
The attacks impacted at least 65 countries and forced at least 29 major energy and shipping companies to alter their routes, according to the rare public assessment by the Pentagon’s Defense Intelligence Agency. Alternate shipping routes around Africa added around 20.4 km to each journey, increasing fuel costs by approximately US$1 million for each voyage.
“Threats to Red Sea transits are compounding ongoing stress to global maritime shipping caused by interruptions at the Panama Canal due to drought,” the Defense Intelligence Agency said.
The US and the UK have launched repeated airstrikes on the Yemen-based Houthis in a bid to curtail their ability to target ships in the region, while also looking to block their revenue sources and impose other financial sanctions. So far, though, the group has been undeterred, and the economic fallout has only continued to widen.
The Houthis began launching the attacks in 2023 to put pressure on Israel and its allies over the war in the Gaza Strip. On Jun 28, a commodities carrier called Tutor suffered severe flooding in its engine room following the first successful attack from a seaborne drone during the current Houthi campaign, and a small cargo ship was on fire after being hit by two projectiles on Jun 27.
The Red Sea attacks have also impacted humanitarian relief efforts. Aid for Sudan and Yemen has been delayed by weeks as a result of longer routes around Africa, the report said. BLOOMBERG
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