Houthi Attacks: New Challenges around Red Sea and Suez Shipping

The strategic blockade of shipping routes in the Red Sea by the Houthi Rebels has again placed war-torn Yemen under a global spotlight. This move not only highlights the conflict, which has resulted in significant casualties but also underscores the Houthis' attempt to assert a distinct position within the Middle Eastern geopolitical landscape.

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Their stance on the Israel-Hamas conflict sets them apart from their larger Arab neighbors, earning a notable degree of attention from various Muslim communities around the world.

Comparing Panama, Suez, and Cape Routes

Calypso Commodities has conducted a comparative analysis of major shipping routes such as the Panama, Suez, and Cape routes for U.S. Gulf cargos to Northeast Asia, revealing significant current impairments.

Houthi Rebels Hijacking Vessel

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Western shipowners stopped transiting the Red Sea since early Dec 2023, due to the risk of hijacking and military conflict.

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Key Takeaways

We see an increasing "Basinasation" of Atlantic and Pacific cargos, while Qatari vessels - unaffected by Houthi attacks - can provide flex to Europe. The limitations at Panama and Suez result in the doubling of cost and travel distance for US Gulf cargos bound to Asia. For a deeper discussion on our findings and their commercial implications on shipping length, interested parties are encouraged to arrange a detailed discussion call.

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