In a surprising revelation, maritime advisory firm Sea-Intelligence has reported that the ongoing disruptions in the Red Sea, caused by Houthi rebel attacks on container ships, are proving more detrimental to global supply chains than the impact of the Covid-19 pandemic. Since the commencement of the Israel-Hamas war in October, Yemen-based Houthi rebels have executed numerous drone and missile attacks in the Red Sea, significantly affecting maritime traffic.
Sea-Intelligence conducted an analysis of current vessel delays, comparing them to historical data from the past several years. The statistics, released on Thursday, underscored that the longer transit around the Cape of Good Hope, as vessels divert from the Red Sea, is already exerting a more substantial influence on ships’ availability to pick up containers at ports compared to the Covid-19 period.
According to the report, the current drop in vessel capacity is the second-largest in recent years, with the blocking of the Suez Canal by the Ever Given container ship in March 2021 being the only event with a more considerable impact. During that incident, which lasted six days, hundreds of vessels were stranded, and it reportedly halted $9 billion of global trade each day.
Maritime organizations, including Sea-Intelligence, estimate that approximately 10% of the world’s fleet is currently out of service due to the increased risk of attacks in the Red Sea. Major shipping firms are rerouting away from the Suez Canal, a vital sea lane that typically accounts for 15% of the world’s commercial shipping.
In response to the heightened risk, the US and UK launched a bombing campaign on Yemen, aiming to protect maritime commerce in the Red Sea. Following Western airstrikes, a Houthi spokesman declared that any ship could be targeted if it is American, and the rebels claimed responsibility for an attack on the US-owned cargo vessel Genco Picardy.
