Tag Archives: Houthi attacks

Not Israel but Global Trade is under attack as Commercial shipping takes an additional 3,500 nautical mile journey to avoid Yemen rebels: How much is that Chinese toaster oven going to cost now?

Cargo-Ships-Containers

Important Takeaways:

  • Red Sea crisis: What it takes to reroute the world’s biggest cargo ships
  • Hundreds of cargo ships are being rerouted around the southern tip of Africa to avoid Houthi attacks in the Red Sea. But just how easy is it to divert the world’s biggest ships?
  • Since November, Yemen’s Houthi rebel group has targeted vessels passing through the strait of Bab al-Mandab, a 20 mile (32km) wide channel that splits north-east Africa from Yemen on the Arabian Peninsula. They claim to be targeting vessels with connections to Israel following the start of the war in the Gaza Strip.
  • They’ve used everything from heavily armed hijackers to missiles and drones. For seafarers caught up in the chaos, it must be terrifying. A tanker, for example, could carry around one million barrels of highly flammable oil.
  • An estimated 12% of global trade passes through the Red Sea every year, worth more than $1tn (£790bn). But many shipping firms have begun avoiding the area altogether. Hundreds of giant container ships, some of them more than 300m (984ft) long, are now choosing a lengthy detour around the continent of Africa instead of heading up the Red Sea and through the Suez Canal on voyages from Asia to Europe. But rerouting such large vessels is no easy task – the logistics involved can be enormous and time consuming.
  • Elsewhere, the severe drought afflicting the Panama Canal and the war in Ukraine – which has curtailed grain shipments via the Black Sea – are also strangling global supply chains. There is an urgency to adapt and reroute, though it comes with serious financial and environmental consequences.
  • Steering clear of the Red Sea and taking the lengthy detour around the Cape of Good Hope, however, adds around 3,500 nautical miles (6,500km) and 10-12 days sailing time to each trip. This requires extra fuel (an additional $1m/£790,000’s worth according to some estimates), possibly finding alternative ports of call, adjustments to delivery timetables, and rising costs. But many companies are making that choice rather than risk attack by missiles and hijackers.

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