Posted 1/24/2024, 12:58:01 AM
Houthi Attacks in Red Sea Cause Major Trade Disruption, Increasing Costs and Transit Times for Shippers
- Two months of attacks in Red Sea by Houthi militants causes biggest trade diversion in decades, increasing costs for shippers globally
- Over 500 container ships taking longer routes around Africa instead of through Red Sea, adding weeks to transit times
- Shipping companies and manufacturers warn disruptions could last for months, leading to higher inflation and economic impacts
- Rerouting adds 40% more distance for ships, with oil tankers and carmakers among those affected by delays and higher costs
- Deterrence against Houthis will take time and attacks are vowing to continue as long as Israel's actions in Gaza do, buoyed by Iran's support