Shipping Companies Struggle with Houthi Attacks Impact

Concerns are growing over the expanding arena of operations for Houthi strikes against commercial shipping in the Red Sea, following a series of recent attacks. After the Iran-backed militia targeted Tel Aviv, resulting in casualties, the Israeli military responded with airstrikes on Yemen’s port city of Hodeidah. This led to a failed retaliatory attack on Eilat, intercepted before causing damage.

Vespucci Maritime CEO Lars Jensen expressed concerns that these actions may indicate a shift in Houthi capabilities and objectives. Jensen highlighted the threat posed to shipping in the Eastern Mediterranean and the potential risks for vessels in the Red Sea. The ability of the Houthis to strike deep into Israel raises alarms about the safety of shipping in a larger area.

Since the attacks began, Red Sea container throughput has plummeted by 90%, impacting shipping companies with increased costs for crew bonuses, war-risk insurance, and Suez transit fees. Insurance premiums for Red Sea transits have risen significantly, prompting some vessels to opt for longer routes around Africa. Recent attacks on box ships, including the CMA CGM-operated Lobivia and the chartered Pumba, further highlight the escalating risks faced by commercial shipping in the region.

Source .