Houthi Attacks on Red Sea Shipping Escalate Global Trade and Insurance Costs

The sustained offensive by Yemen's Houthi rebels on commercial vessels in the Red Sea has led to a significant increase in shipping insurance rates and rerouting of maritime traffic, impacting global trade.

• Houthi attacks since November have caused a 42% decrease in ships traveling through the Suez Canal and a 256% rise in container prices from Shanghai to Europe.
• Insurance premiums for ships and cargo have surged, with war risk premiums reaching up to 1.0% of a ship's value, significantly affecting the cost of maritime transport.
• Some shipping companies are detouring around southern Africa, adding up to 20 extra days to voyages and increasing fuel and labor costs.
• The attacks are part of the Houthi's solidarity with Palestinians amid the Israel-Hamas conflict, which has seen significant casualties on both sides.
• The diversion of ships could potentially lead to a resurgence in piracy in the Indian Ocean, adding another layer of risk to global shipping.

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CNA Raw Story Breitbart