The Houthis have launched attacks from Yemen on the world’s primary East-West trade route, forcing traders to rethink routes and prices. Some container ships have anchored in the Red Sea, while others have disabled tracking systems.
As a result of recent assaults on vessels along the major Red Sea shipping route, a U.S.-led international force has been dispatched to patrol waters near Yemen in anticipation of another round of international commerce disruptions caused by the COVID-19 pandemic.
The Suez Canal connects the Red Sea to the Mediterranean, the shortest shipping route between Europe and Asia. About 12% of global shipping passes through the canal.
A number of large shipping companies have announced that they will be rerouting their routes to avoid the Red Sea and instead use the Cape of Good Hope in southern Africa.
A considerable number of vessels continue to traverse the canal, however. Currently, LSEG data shows that several vessels have armed guards.
In support of Palestinians, the Houthis, backed by Iran, have intervened in the Israel-Hamas conflict by blocking vessels in vital shipping lanes towards Israel.
Houthis attacked two commercial ships in the southern Red Sea on Monday.
The duration of the crisis will determine the impact on international trade.
