The Iran-linked group that controls part of Yemen has started bombing cargo ships to and from Israel in “solidarity” with Hamas. Tension in the region could affect global trade.
In recent weeks, at least fifteen major shipping companies have suspended their routes through the Red Sea, fearing attacks by the Houthi militia, which controls part of Yemen. Recently, several vessels of different flags have been attacked in the region, mainly by drones.
An important route for world trade, the Red Sea is used by cargo ships on their way to the Gulf of Aden and the Suez Canal, which connects the markets of Asia and Europe without the need to go around Africa.
DW summarizes below the consequences that these attacks could have on global trade.
Why are the Houthi militias attacking ships?
The Houthi militia, based in Yemen, has stepped up attacks on cargo ships in the Red Sea in support of the Islamic fundamentalist group Hamas in the current conflict against Israel. Hamas is considered a terrorist group by several Western countries, including Israel, the European Union and the United States.
The Islamic Republic of Iran and Israel are enemies that pose a mutual existential threat, compete for regional hegemony and maintain a covert war with cyber attacks, assassinations and sabotage.
Iran leads the so-called “axis of resistance”, a sort of informal alliance made up of Syria, the Lebanese Shiite group Hisbollah, Palestinian factions, Iraqi militias and the Houthi rebels in Yemen, among others.
The civil war in Yemen began in 2014, when the capital Sana was seized by the Iranian-backed Houthi rebels. Since 2015, a coalition led by Saudi Arabia, an ally of Yemen’s internationally recognized government, has been fighting the Houthis, fearing a conflict on its territory. As part of this tension, ships were sporadically attacked in the region, where Somali pirates also operate.
But with the start of the current conflict between Israel and Hamas, attacks on cargo ships have increased exponentially, causing global concern.
The Houthi rebels declared “solidarity” with Hamas and attacked the city of Eilat, in southern Israel, with drones and missiles launched from the south of the Arabian Peninsula. They also began bombing ships in the Red Sea, which bathes part of Yemen’s coast.
The attacks are part of the Houthis’ anti-Semitic and anti-American rhetoric and their hope of gaining wider recognition as part of the Iran-led Axis of Resistance.
The militia presents itself as victims of a conspiracy between Israel, the US and Saudi Arabia, which is why it is popular with part of the Yemeni population.
Which ships are they targeting?
The Houthi militia targets all ships it believes are arriving or leaving Israel. The only cargo ships with free passage in the Red Sea are those carrying humanitarian aid to the Gaza Strip. All others are “legitimate targets of our armed forces,” the group said in a statement.
The Houthi rebels have a significant arsenal of weapons, as well as drones and anti-ship missiles – even a helicopter has been used to hijack an Israeli ship.
On December 15, two Yemeni cargo ships were attacked and set on fire, including the “Al Jasrah”, operated by the German shipping company Hapag-Lloyd.
How important is the Red Sea?
To the north of the Red Sea lies the Suez Canal and, to the south, the Bab al-Mandab Strait, which leads to the Gulf of Aden. It is a busy maritime route, where ships transit the Suez Canal to transport goods between Asia and Europe.
Around 10% of world trade passes through the Suez Canal. A large part of Europe’s energy supply comes from the Red Sea, as well as foodstuffs such as palm oil and grains, as well as all kinds of products delivered by container ships.
In 2021, a ship stranded in the Suez Canal caused disruption around the world for several days by blocking the passage of other cargo ships.
How do attacks affect trade?
Due to the escalation in attacks, at least 15 shipping companies – including Mediterranean Shipping Company (MSC), CMA CGM, Hapag-Lloyd, Maersk and Evergreen – have announced the temporary suspension of voyages through the Red Sea.
In the case of Taiwan’s Evergreen, the company said it would no longer accept any Israeli cargo for the time being.
Some ships have adopted an alternative, longer route, bypassing Africa and passing through the Cape of Good Hope. According to experts, this extends the journey by up to 31 days, depending on speed – which means higher costs and delays in deliveries.
The clearest immediate consequence of the attacks, however, has been an increase in insurance costs: according to Lloyd’s List Intelligence, the prices of these services have doubled for ships traveling in the Red Sea – for Israeli shipping companies, the increase is as much as 250%.
Carriers are also charging their customers a “war risk surcharge”. This is the case, for example, with Germany’s Hapag-Lloyd, which is expected to charge between 250 and 1000 dollars (R$1,213 to R$4,854) more per container from 2024. The company said that, by the end of the year, it will have changed the route of 25 vessels because of insecurity in the Red Sea.
For the same reasons, Denmark’s Maersk has been charging 200 dollars (R$971) more per container leaving Asia for Europe and North America, to compensate for the longer route via the Cape of Good Hope. From 2024, another 500 dollars (R$2,427) will be charged.
In addition to the surcharges, the reduction in supply and increase in demand resulting from these longer routes could impact global trade.
Oil company BP has also temporarily suspended all transportation across the Red Sea, raising fears that the crisis – which has so far mainly affected the transportation of industrial goods – could also spread to the energy sector and have a ripple effect on the economy, pushing up inflation.
Despite the Houthi militia’s arsenal, experts believe that it does not have enough warships to completely block the Red Sea and impose a barrier. Combat ships from the United States, France and other countries also patrol the area and keep the waterway open.
In recent weeks, several missiles and drones have been shot down by American, French and British warships patrolling the area.
How is international politics reacting to the attacks?
UN Secretary-General António Guterres has called for an “immediate” end to the attacks, which not only impede freedom of navigation, but could also cause an ecological disaster if they hit an oil ship.
The European Union (EU) said that the numerous attacks threaten international shipping and maritime safety and constitute a serious violation of international law.
Foreign Minister Annalena Baerbock demanded that “the Houthi attacks on civilian merchant ships in the Red Sea stop immediately”. According to her, these attacks show “that the threat to Israel’s security comes not only from Hamas in Gaza, but also from the Houthis”.
The Pentagon reported that US Defense Secretary Lloyd Austin wants to visit Bahrain to “form multilateral coalitions” in an effort to “respond to maritime aggression that threatens transportation and the global economy”.
Iran warned that the US proposal might not be well received.
“If they carry out such an irrational measure, they will face extraordinary problems,” said Iranian Defense Minister Mohammad Reza Ashtiani.
British Defense Secretary Grant Shapps also warned that attacks on merchant ships in the region represent a direct threat to international trade and maritime security.
le/rk/ra (Lusa, EFE, ots) *** Translated by DEFCOPress FYI Team ***