The crew of the car carrier Galaxy Leader has been held hostage by the Houthis in Yemen for 429 days. However, there is now hope that the 25 crew members could be freed soon due to the phase one ceasefire agreed between Israel and Hamas. A senior Houthi official assured through Palestinian negotiators that the ship and its crew would be released in the coming days.
The Red Sea shipping crisis began when armed Houthis stormed the ship in November 2023, leading to more than 100 vessels being attacked in support of Hamas. The global economy is suffering a $175 billion loss per year due to the re-routing of merchant fleets around Africa. The recent ceasefire allows international merchant ships to transit the Red Sea, but Israeli-owned and flagged ships remain targets, with potential threats to British and American vessels if attacks on Yemen continue.
Suez Canal transits have decreased significantly in 2023, impacting various types of vessels. The potential reopening of Red Sea routes could restore capacity to the container shipping system, benefiting the global economy. However, new container vessels are set to launch in the next three years, adding to existing capacity. The economic impact of reopening Red Sea routes would be significant, with potential benefits for the shipping industry.
