American report: Houthi attacks on ships harmed regional security and put pressure on international trade

A report by the US Defense Intelligence Agency indicated that Houthi attacks on ships in the Red Sea put pressure on international trade, considering that the Houthis’ actions harmed regional security and hindered international peace efforts, despite their quest to obtain international legitimacy.

According to the report , since November 2023, the Houthis have carried out dozens of attacks on commercial ships crossing the Red Sea, endangering their civilian crews by threatening freedom of navigation in a critical global transport corridor.

The Houthis are non-state actors in Yemen, and have used Iran's support to gradually expand their military capabilities since at least since 2015.

Since mid-December last year, the Houthis have threatened to target ships associated with cooperation with the United States and its allies, including members of Operation Prosperity Guardian, a multinational initiative to protect freedom of navigation in the Red Sea.

Economic repercussions of the Houthi attacks

As of mid-February, container shipping through the Red Sea has fallen by about 90% since December 2023; Shipping through the Red Sea usually represents about 10-15% of international maritime trade. The effects were less severe in other freight sectors that transport goods and bulk carriers.

Alternative shipping routes around Africa add about 11,000 nautical miles, one to two weeks of transit time, and about $1 million in fuel costs per trip.

For many shipping companies, the combined costs of crew bonuses, war risk insurance (about 1,000% more than pre-war costs), Suez Canal transit fees increased due to the additional time, and the financial costs of traveling around Africa were prohibitive.

Threats to Red Sea crossings exacerbate ongoing pressure on global maritime navigation.

As the shipping time caused by interruptions in the Panama Canal due to drought.

Since mid-February, insurance premiums for crossing the Red Sea have increased by 0.7% of the total value of the ship, compared to less than 0.1% before December 2023.

As of February, humanitarian relief operations to Sudan and Yemen were delayed by weeks, and aid organizations are taking longer due to longer routes around Africa.