Barran Press
Recent maritime data reveals a staggering 66% decline in vessels transiting the Suez Canal, as shipping companies divert their routes around Africa in response to escalating Houthi attacks in the Red Sea.
According to a report by Danish shipping giant A.P. Moller-Maersk, monitored by Barran Press, the negative impact of the Red Sea attacks on global shipping and supply chains continues to grow as traffic shifts away from the Suez Canal. The report states that the attacks by the Iran-backed Houthis have disrupted a vital trade route between East and West, forcing lengthy detours, driving up shipping costs, and causing congestion at Asian and European ports.
Maersk attributes the disruption to "re-shaping of service and volume shifts," which have strained infrastructure, leading to port congestion, delays, and shortages of capacity and equipment. The company further stated that the impact extends beyond trade routes between East Asia and Europe, affecting its global network and warning of a "knock-on effect" causing further congestion.
The report acknowledges that the timeline for easing these disruptions and returning to normalcy remains uncertain, despite strong demand for container shipping.
In July, Egypt confirmed a 23.5% decline in Suez Canal revenue for the fiscal year ending in June, reaching $7.2 billion, due to the Houthi attacks. Suez Canal Authority Chairman Osama Rabie attributed the decline to the Red Sea crisis, stating that the security challenges have prompted many ship owners and operators to choose alternative routes, negatively impacting canal traffic.
The Houthi militia, designated as a terrorist organization by several countries, has been targeting commercial shipping vessels in the Red Sea, Arabian Sea, and Gulf of Aden since November 2023. These attacks have led to increased maritime insurance costs and forced many international shipping companies to opt for longer routes around the southern tip of Africa.
In December 2023, the United States formed a multinational coalition to deter Houthi attacks and protect maritime navigation. US forces have conducted intermittent airstrikes against Houthi military targets. Since January 12th, there have been approximately 560 US and British airstrikes against Houthi forces, resulting in the deaths of 58 and injuries to 86, according to the Houthi group.
The internationally recognized Yemeni government maintains that Western airstrikes are insufficient to neutralize the Houthi threat to navigation and advocates for supporting Yemeni forces to recapture Hodeidah and its ports, as well as other areas controlled by the militia.