WASHINGTON– Houthi attacks against commercial vessels in Red Sea caused a 90 percent decline in container shipping in the area between December to February, US officials said in their initial formal assessment of the rebel’s campaign’s economic impacts.
According to a rare assessment by the Pentagon’s Defence Intelligence Agency, the attacks affected at least 65 countries. They also forced at least 29 major shipping and energy companies to change their routes.
The fuel costs for each voyage increased by about US$1 million (S$1.35million) due to the addition of 11,000 nautical miles.
The Defence Intelligence Agency stated that “threats to Red Sea transits compound ongoing stress on global maritime shipping due to interruptions at the Panama Canal because of drought.”
The United States and Britain have repeatedly launched air strikes against the Yemeni Houthis to limit their ability to target vessels in the region. They also want to block their revenue and impose financial sanctions. The group has not been deterred and the economic impact has only increased.
In 2023, the Houthis launched their attacks in order to exert pressure on Israel and allies regarding the Gaza Strip war.
On June 12, a cargo carrier named Tutor suffered severe flooding of its engine room after the first successful attack by a seaborne drone in the current Houthi campaigns. A small cargo ship caught on fire after being hit twice by projectiles on June 13.
The Red Sea attacks also affected humanitarian relief efforts. The report stated that aid for Sudan and Yemen was delayed by several weeks due to longer routes around Africa. BLOOMBERG