The Red Sea Shipping Crisis: A Call for International Cooperation

Paul Smith at Current Events

The Red Sea shipping crisis has been a major concern for the global economy, with the Houthi rebels’ attacks on commercial ships in the region causing disruptions to global supply chains. Since mid-November 2023, the Yemen-based, Iran-backed Houthi rebel group has attacked dozens of commercial ships in the Red Sea, with no signs of slowing down. The Houthis have claimed that their strikes are directed at boats with Israeli interests, but in practice, they have targeted ships indiscriminately. Shipping is notoriously opaque, with vessel ownership and operation, crew nationality, and flag of registry often differing, making it difficult to identify the targets.

The United States has announced an international security initiative to protect commercial vessels and has launched strikes on Houthi sites in Yemen. The US has also set up a 10-nation naval task force to protect ships traveling along this important route. The UK and the US have also imposed sanctions against senior Houthi officials for their roles in supporting or directing attacks on commercial shipping in the Red Sea.

The Red Sea is one of the most important arteries in the global shipping system, with one-third of all container traffic flowing through it. Any sustained disruption in trade there could send a ripple effect of higher costs throughout the world economy. This is particularly true of energy: 12 percent of seaborne oil and 8 percent of liquified natural gas (LNG) transit the Suez Canal. Avoiding the Red Sea means abandoning one of the most common global shipping routes from Asia to Europe. Indeed, 40 percent of Asia-Europe trade normally transits the sea. Ships shunning the Red Sea will have to instead sail around the Horn of Africa, which can cost $1 million round trip in additional fuel costs. Still, more than one hundred fifty commercial ships have chosen the longer route since November.

The Houthi strikes are only the latest in a series of disruptions that have highlighted the interconnected nature of shipping and its crucial role in the global economy. In 2019, Iran attacked several oil tankers in the Strait of Hormuz, leading many freight companies to opt for the Cape of Good Hope route. The shipping industry is facing a growing number of challenges, including climate change, piracy, and geopolitical tensions. The international community must work together to address these issues and ensure the continued smooth functioning of global trade.

The Red Sea Shipping Crisis: A Call for International Cooperation

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