THE Houthis said they will stop attacking US and UK vessels in the Red Sea area in response to the Israel-Hamas ceasefire agreement after a year-plus campaign that’s upended global trade.
Ships belonging to US and UK individuals or entities – and those sailing under their flags – are no longer subject to sanctions as at Jan 19, according to an e-mail from the rebel group forwarded by the shipping trade organisation Bimco. The Houthis have previously e-mailed shipping companies, according to a United Nations report.
The Houthi aggression prompted many shippers to head around Africa – via the Cape of Good Hope – to avoid the threat. While this latest announcement is a step towards normalisation, it’s unlikely to result in an immediate, mass return to the Red Sea trade route.
“Assuming the ceasefire holds and the US also refrains from using force, shipping companies are expected to gradually resume operations through the Red Sea,” said Jakob Larsen, Bimco’s chief safety and security officer. “Tramp vessels are likely to be among the first, while liner shipping companies will follow, depending on how quickly they can reorganise their route networks to accommodate the new reality.”
Ships wholly owned by Israeli individuals or entities, or sailing under the Israeli flag, remain banned from transiting the Red Sea, Bab el-Mandeb, the Gulf of Aden, the Arabian Sea and the Indian Ocean, according to the e-mail from the Humanitarian Operations Coordination Center in Yemen.
Sanctions on these vessels will be stopped upon full implementation of all phases of the agreement, the message said.
“Re-routing from the Red Sea has tightened capacity amongst all shipping segments,” Jefferies wrote in a research report. “Suez Canal transits overall are down 56 per cent from 2023.”
The Houthis also warned that any aggression against Yemen by the US, UK or Israel would lead to restrictions being reinstated.
“Our prediction is a gradual restoration of shipping operations, which may take several months to stabilise,” maritime security company Diaplous wrote in a note to clients. BLOOMBERG
