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.

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

Graphic Content Warning

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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