Indian exports are cautiously resuming routes through the Red Sea after disruptions from Houthi attacks. Last year’s instability led shippers to divert around the Cape of Good Hope, extending travel by 14 to 20 days and escalating costs. This corridor is vital, facilitating 80% of India’s trade with Europe and the US.
Oil executives are closely watching shipping conditions in the Red Sea after a pause in attacks by Iran-backed Houthi rebels. A Liberian-flagged oil tanker recently sailed through the Red Sea, one of the first voyages since the rebels limited attacks on commercial vessels. Executives are cautious, monitoring risks and competitors’ actions before navigating the area.
In a recent statement, Yemen’s Houthi rebel group announced their intention to target ships previously owned by Israeli companies, even after being resold. This expands their potential targets in missile attacks on civilian shipping in the Red Sea. Despite claims to only target vessels linked to Israel, they have attacked ships with no clear ties.
Two vessels near Yemen’s Red Sea port of Hodeidah were damaged by missiles and a sea drone. The Panama-flagged tanker M/T Cordelia Moon and a Liberia-flagged bulker were hit, with the former sustaining damage on its port side tank. Houthi militants claimed responsibility. Crews are safe, and investigations are ongoing.
A total of 122 Filipino seafarers have chosen not to sail in the high-risk waters of the Red Sea and Gulf of Aden, exercising their “right to refuse sailing.” The Department of Migrant Workers revealed that ship owners have respected their decision, leading to limitations in voyages or sending them home. The Department of Foreign Affairs advised seafarers to prioritize safety and enforce bans on hiring for vessels with past incidents.
Iranian state media reported activation of air defense against UAVs near Isfahan. Maritime security warns ships to be cautious in Arabian Gulf due to recent UAV activity. Attacks may be in retaliation for Iran’s actions, increasing tensions in the region. British military advises vigilant reporting of suspicious activity at sea.
Following coalition forces’ bombing of targets in Yemen to neutralize the threat to shipping in the Red Sea, the crisis has worsened, raising the risk to merchant shipping. Xeneta reports the cost to transport goods across the Cape of Good Hope is $1,000 per box. According to chief analyst Peter Sand, shipping companies may not return to the Red Sea for six months, likely leading to increased network loops and higher costs.
