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Global Shipping Giants Divert Routes as Houthi Attacks Escalate in Red Sea

Dec, 20, 2023 Posted by Gabriel Malheiros

Week 202346

A situation parallel to the conflict between Israel and Hamas has raised concerns in recent days. Rebels of the Houthi faction, supported by Iran and controlling part of Yemen, have escalated attacks on merchant ships in the Red Sea, leading over a dozen shipping companies to suspend services in that region.

On Monday (18), the United States announced a coalition of ten countries to enhance security in the area. However, the Houthis responded on Tuesday (19) that they plan to persist with these actions as a demonstration of support for Hamas.

The escalating tensions in the Red Sea were a focal point of U.S. Secretary of Defense Lloyd Austin’s visit to the Middle East on the 18th.

Secretary Austin commented that the attacks have already altered the course of the global economy, a threat likely to persist if the international community doesn’t come together to address the issue collectively,” said Pentagon spokesperson Major General Pat Ryder on Tuesday (19).

In recent days, the following shipping companies announced that their vessels will no longer travel the Red Sea until further notice: Maersk (Denmark), Hapag-Lloyd (Germany), CMA CGM (France), MSC (Italy-Switzerland), BP (United Kingdom), Evergreen Marine and Yang Ming Marine Transport (Taiwan), Cosco (China), OOCL (Hong Kong), Euronav (Belgium), Frontline and Wallenius Wilhelmsen (Norway), and HMM (South Korea).

Together, these companies “control about half of the global container shipping market,” according to Albert Jan Swart, an analyst at ABN AMRO. “Avoiding the Red Sea will lead to higher costs due to increased travel time,” Swart stated.

Despite the Houthis claiming to target vessels related to Israel, their recent actions have affected ships from various countries. On November 19, they seized a ship partially owned by an Israeli businessman, the Galaxy Leader.

The U.S. government classified the incident as “piracy” and stated that it is considering redesignating the Houthi group as a terrorist organization—currently, only Saudi Arabia, the United Arab Emirates, and Yemen have adopted this classification for the group.

Artillery attacks on merchant ships passing through the Bab el-Mandeb strait have recently intensified, targeting at least 20 vessels.

Coalition

On Monday (the 18th), the Pentagon announced forming a military coalition of ten countries, including the United States, the United Kingdom, France, Spain, Italy, the Netherlands, Canada, Norway, Bahrain, and Seychelles.

The initiative, called Operation Prosperity Guardian, aims to ensure security and freedom of navigation in the Red Sea. The coalition will operate under the auspices of the Combined Maritime Forces, a group of 39 countries dedicated to protecting trade flow and improving maritime security in various regions.

The Pentagon emphasized that the escalation of Houthi attacks threatens free trade, endangers sailors, and violates international law.

The U.S. Secretary of Defense emphasized the importance of addressing the challenge posed by the Houthis, a non-state actor that has launched ballistic missiles and drones against merchant ships from various nations legally transiting international waters.

Source: R7

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