Airstrikes on Yemen bring new level of chaos to shipping in the southern Red Sea
Red Sea has only escalated the chaos across the shipping industry, underscoring the threat of an enduring supply-chain crisis as vessels navigate the crucial trade route.
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View Details»On Wednesday, a third commodity carrier in three days was struck, this time by a drone. Senior officials in the shipping industry privately acknowledge that many crew are now frightened at the prospect of transit.
Shortly after the US and UK launched airstrikes at Houthi targets in Yemen — marking a step up from the more defensive approach known as Operation Prosperity Guardian — Western navies advised ships to stay away. That guidance was publicly heeded by the owners and operators of at least 2,300 merchant vessels — and some insurers responded by restricting cover.
The result has been sharp declines in shipments through a waterway that would normally handle about 12% of global seaborne trade. Flows of oil, gas, grains, manufactured goods have increasingly been diverted. Even a livestock carrier appeared to detour, raising animal welfare concerns.
“It’s a very uncertain time, and I think all of us are waiting to see the overall impact of the ongoing Operation Prosperity Guardian, and also the most recent strikes,” said John Stawpert, a senior manager for trade and environment at the International Chamber of Shipping, which represents owners of about 80% of the global shipping fleet. “The potential impact of these attacks is horrendous” for crews.
Insurance costs for those ships whose seafarers do brave the waterway have shot up tenfold, including a large increase since the airstrikes. Some underwriters are even seeking to exclude US, UK and Israeli vessels from
