01/17/2024

Houthi Attacks Starting to Reshape Shipping Flows

Some fear growing threat to commercial lifelines

Just as global supply chains finally returned to normal, a rebel group in Yemen began attacking container ships and oil tankers passing through the Red Sea.

The continuing attacks by the Houthis, a militant group backed by Iran, have increased global shipping costs, caused cargo carriers or their clients to opt for longer alternate routes from Asia to Europe and the United States and raised alarms about the economic costs of a wider conflict.

Almost one-fifth of U.S. freight arrives at East Coast ports after transiting the Red Sea and Suez Canal, according to Moody’s. Solar panels, electric vehicle batteries, toys and vacuum cleaners are among the goods making that trip. But for now, economists do not anticipate a major impact on the prices that U.S. consumers pay — unless the violence worsens.

Please select this link to read the complete article from The Washington Post.