Since mid-November, the Houthis have begun to carry out attacks on "Israeli-related vessels" in the Red Sea. At least 13 container liner companies have announced the suspension of sailing in the Red Sea and nearby waters or diversions to the Cape of Good Hope. It is estimated that the value of the cargoes carried by the vessels diverted from the Red Sea route has totalled more than $80 billion.
According to the tracking statistics of a shipping big data platform in the industry, the number of container ships passing through the Bab el-Mandeb Strait (the gateway to the Suez Canal, one of the world's most important shipping lanes), which is located at the junction of the Red Sea and the Gulf of Aden, dropped to zero as of the 19th, which indicates that the key passageway into the Suez Canal has been paralysed.
According to data provided by logistics company DXN, 121 container ships have already given up on entering the Red Sea and the Suez Canal, choosing instead to diversions around the Cape of Good Hope in Africa, resulting in an increase of about 6,000 nautical miles in the voyage, which could extend sailing time by one to two weeks. The company expects more ships to join the bypass route in the future. According to the latest report of the U.S. Consumer News and Business Channel, the value of the goods carried by these vessels diverted from the Red Sea route totalled more than 80 billion U.S. dollars.
In addition, the cost of insurance for ships still choosing to sail in the Red Sea jumped this week from about 0.1 per cent to 0.2 per cent of a vessel's hull value to 0.5 per cent, or $500,000 per voyage for a $100 million vessel, according to several foreign media reports. Shipping and logistics companies face the dilemma of changing routes, which means higher fuel costs and delays in arriving at ports, while continuing to navigate the Red Sea entails greater safety risks and insurance costs.
United Nations officials have said that if the Red Sea waterway crisis continues, it could lead to higher commodity prices, a bitter consequence that would be paid for by consumers.
