1 of 2 Armed men on a beach in Yemen with a cargo ship in the background Photo: Khaled Abdullah/Portal Armed men on a beach in Yemen with a cargo ship in the background Photo: Khaled Abdullah/Portal
A series of attacks on ships transiting the Red Sea to the Suez Canal forced logistics companies to change the route of their cargo ships, which must make longer turns, which could have consequences for economies around the world.
The Suez Canal is the main link between Asia and Europe, and the shipping route that includes the Red Sea and the canal is important for product supply chains around the world. The United States Energy Agency (EIA) says the site is “essential to global energy security” and the supply of raw materials and goods.
The attacks were carried out by Houthi rebels, a group that supports Hamas Palestinians in the war against Israel. Find out what's happening in the region below.
A civil war has been raging in Yemen for years, with one armed group supported by Saudi Arabia and the other by Iran. The latter are the Houthi rebels.
In recent days, the Houthis have begun attacking a new target with missiles and drones: cargo ships traveling through the Red Sea toward the Suez Canal.
The Red Sea is a canal between the Arabian Peninsula and the African continent. At one point, in the Strait of Babelmândebe, the distance between the two continents is only 30 kilometers of sea line. According to the Associated Press news agency, around 10% of goods traded worldwide pass through this passage.
Yemen lies at one end of the strait. On Monday (18), the Houthis confirmed two attacks. They claim that they will attack ships that have some connection to Israel's war with Hamas, but in practice their targets are unrelated to the conflict (see below for which cargo ships have been recently attacked).
The US could send military personnel to respond to attacks by Houthi rebels. U.S. Defense Secretary Lloyd Austin said the country would organize a force with representatives from multiple nations to “respond to security challenges in the southern Red Sea and the Gulf of Aden, with the goal of ensuring freedom of navigation for all countries.”
2 of 2 Map shows the route ships take to reach the Suez Canal Photo: Kayan Albertin/g1 Map shows the route ships take to reach the Suez Canal Photo: Kayan Albertin/g1
Freighters avoid the region
Attacks on merchant ships have terrified some of the world's leading shipping and oil companies. In practice, they are rerouting the trade route via the Red Sea.
Around 50 ships pass through the Suez Canal every day. According to The New York Times newspaper, the latest data shows that at least 32 have changed their route.
These changes are expected to result in delays and price increases.
British Petroleum (BP) said it had decided to “temporarily suspend all transit through the Red Sea,” including deliveries of oil, liquefied natural gas and other energy supplies. According to the company, this is a “cautionary pause.” The decision is not final.
Oil and natural gas prices rose in Europe due to market unrest over the Houthi attacks.
Food and industrial products also pass through the Suez Canal. Opened in 1869 to connect the Red Sea with the Mediterranean, it can accommodate huge ships weighing up to 240,000 tons.
According to the World Maritime Transport Council (WSC), an institution that represents major ocean freight carriers, ships can save 9,000 kilometers through the canal.
John Stawpert, senior environment and trade manager at the International Chamber of Shipping, said disruption to shipping through the Suez Canal had “the potential to have a huge economic impact.”
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Four of the world's five largest cargo shipping companies have suspended transit through the Red Sea or rerouted their routes. Are they:
- MSC,
- Maersk,
- CMA CGM Group and
- HapagLloyd
Simon Heaney, senior manager at consultancy Drewry, says the entire transport service is likely to have to change routes.
Some ships have to go around the Cape of Good Hope in southern Africa. That could add more than a week to travel times, according to some analysts polled by the Associated Press.
Companies can put more ships into circulation to make up for the extra time or use more fuel if they choose to travel faster.
This all increases transportation costs, but the price increase is unlikely to be comparable to that seen during the pandemic, Drewry's Heaney said.
A Houthi spokesman, General Yahya Saree, said the group attacked the following cargo ships:
- The Cayman Islandsflagged tanker Swan Atlantic was loaded with chemicals and oil.
- The Panamanianflagged cargo ship MSC CLARA.
Otherwise, other ships reported being attacked:
- Danish operator UniTankers said the ship Swan Atlantic, which was carrying vegetable oils to a French territory in the Indian Ocean, was hit by an object that caused a small fire. The fire was extinguished, the ship received military assistance and continued its journey