According to Arabian Gulf Business Insight, Houthi attacks on shipping vessels in the Red Sea have resulted in a more than 50% increase in air cargo shipments to Saudi Arabia.

The American platform, which specializes in reporting on economic and trade trends in the Gulf and the broader Middle East and North Africa region, predicts that Saudi airports will handle over one million tons of air cargo in 2024 for the first time. Officials have indicated that total air shipments are expected to reach 1.2 million tons by the end of the year.

Abdulaziz Al-Duailej, President of the Saudi General Authority of Civil Aviation, reported at a forum in Riyadh this week that Saudi airports have seen a 53% year-on-year increase in air cargo volumes so far this year. He noted that air freight is less susceptible to disruptions caused by instability and natural disasters, highlighting Saudi Arabia's unique geographical advantage.

The report explains that following the outbreak of conflict in Gaza, the Houthis intensified their attacks on shipping in the Red Sea, prompting shippers to avoid this route and driving up insurance costs. Consequently, the Suez Canal has experienced a revenue drop of 50-60%, totaling around $6 billion in the first eight months of this year.

Saudi Arabia has already invested 200 billion riyals (approximately $53.3 billion) as part of a broader 3 trillion riyals plan to establish itself as a global logistics hub at the crossroads of three continents, focusing on ports, railways, and aviation.

Al-Duailej added that air cargo is experiencing global growth due to instability in the Middle East, with overall global demand for air freight rising by 13.6% in July 2024 compared to the previous year—marking the eighth consecutive month of double-digit growth.

The International Air Transport Association (IATA) reported an 11.4% year-on-year increase in global air cargo demand in August, continuing the trend of strong performance supported by slow but steady growth in global trade, a booming e-commerce sector, and ongoing constraints in maritime shipping capacity.

Saudi Minister of Transport and Logistics Services, Saleh Al-Jasser, noted that the government has successfully shifted much of its trade flow from the western coast to the eastern coast, utilizing airports and railways in Dammam, Jubail, and Ras Al-Khair.

Since November 2023, the Houthis have launched missile and drone attacks on commercial shipping in the Red Sea, leading to increased maritime insurance costs and pushing many shipping companies to prefer the longer route around the southern tip of Africa.

In December 2023, the United States, a key ally of Israel, established a multinational coalition to protect maritime traffic from Houthi attacks, while U.S. forces occasionally conduct strikes against Houthi military targets.