Yemen Houthi Attacks in the Red Sea Disrupt Global Shipping, Raise Concerns for Energy Security

In a series of attacks in the Red Sea, Yemen's Houthi militia has targeted vessels, posing a threat to global trade. According to a report by the Swiss newspaper "Neue Zürcher Zeitung" on the 17th, major shipping giants, including Denmark's Maersk and Germany's Hapag-Lloyd, have announced the suspension of navigation in the Red Sea due to ongoing ship attacks. Following Maersk and Hapag-Lloyd, Switzerland's Mediterranean Shipping Company and France's CMA CGM declared the suspension of their cargo ships' voyages in the Red Sea on the 16th. On the 18th, Evergreen Marine Corp. stated that, due to security concerns, the company would suspend Israel's import and export services, effective immediately.

As prominent global shipping companies continue to halt Red Sea navigation, the impact is expected to reverberate across the maritime industry. The Suez Canal Authority of Egypt stated it is closely monitoring the tense situation in the Red Sea and its effects on canal transit.

Since the outbreak of the recent Israel-Palestine conflict, Yemen's Houthi forces have claimed to support Palestine and launched frequent missile and drone attacks on vessels associated with Israel in the Red Sea. According to Zhong Zhechao, founder and CEO of One Shipping, in less than a month, approximately 16 ships of various types have been attacked or even seized.

The Red Sea, connecting the Arabian Sea and the Indian Ocean through the Mandeb Strait in the south and linked to the Mediterranean and the Atlantic Ocean through the Suez Canal in the north, is one of the world's busiest maritime routes. About 12% of global cargo transportation reportedly passes through the Red Sea and the Suez Canal. During peak times, approximately 500 container ships traverse the Mandeb Strait in southern Yemen daily.

Vincent Stammer, a trade expert at the Kiel Institute for the World Economy in Germany, warned, "If most ships are targeted by the Houthi militia, transportation costs between Asia and Europe will undoubtedly rise." Maritime companies will need to invest more in security measures. According to data from maritime intelligence agency Lloyd's List Intelligence, insurance costs for ships sailing in the Red Sea have already doubled.

The disruption extends beyond energy transportation, affecting various trade sectors. A significant portion of European energy supply relies on the Red Sea route, and with the passage blocked, many ships are rerouting via the Cape of Good Hope.

Moreover, maritime experts anticipate a ripple effect on supply chains and transportation costs, with shipping delays potentially causing a 20% increase in transport costs for electric vehicles. The heightened tensions in the region are prompting Western countries, including the United States, to consider deploying a naval task force to patrol the Red Sea, the Mandeb Strait, and the Gulf of Aden.

As the crisis unfolds, concerns grow over potential long-term impacts on global energy security, with disruptions in the Red Sea posing a serious threat to the stability of energy supply chains worldwide. The Suez Canal, being the largest global shipping artery, plays a crucial role in connecting Asia to Europe, the Mediterranean, and the U.S. East Coast. The duration and resolution of the current crisis remain uncertain, leaving the international community on high alert for potential consequences on energy safety.

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