Houthi Attacks on Red Sea Shipping Disrupt Global Trade

Shipping Companies Reroute Vessels, Face Extended Delivery Times and Increased Costs

Houthi rebels, supported by Iran, have been attacking cargo ships on the Red Sea, disrupting global trade and causing shipping companies to reroute their vessels around the southern tip of Africa.
The Red Sea, a vital trade route facilitating up to 12% of global trade, has seen a significant decrease in freight volume due to the attacks.
Shipping companies, such as Tesla and Hapag-Lloyd, are experiencing extended delivery times and increased costs, with Hapag-Lloyd estimating additional costs running into the high tens of millions of euros per month.
The German government has expressed support for the US-led military strike against Houthi positions in Yemen, with German shipping companies urging for military involvement to secure the trade route.
Despite the disruption, German retailers do not expect immediate shortages in stores due to robust supply chain management, but the situation may worsen during the Chinese New Year celebrations when China's factories close.