Since the Houthis in Yemen declared war on Israeli ships or those heading to Israeli ports through the Bab al-Mandab Strait, the Red Sea front has witnessed continuous escalations between the features of the war looming over the region and the gathering of Western battleships and aircraft carriers off the coast of Yemen, to the negative effects that the crisis has had on the region. Global trade movement.
Published on: 04/01/2024 – 12:50
6 minutes
In this context, 18 international shipping companies announced that they were changing the routes of their ships. Instead of passing through the Red Sea, they decided to go around Africa to avoid sailing from there, according to what the United Nations International Maritime Organization announced last Wednesday.
The organization’s president, Arsenio Dominguez, said, “A large number of companies, about 18 shipping companies, decided to change the route of their ships around South Africa in order to avoid being exposed to attacks.” He added, “(This) represents an additional 10 days to flights and a negative impact on trade and an increase in the cost of shipping.”
Extending the duration of trips
Hundreds of container ships and other vessels were rerouted to take the Cape of Good Hope route in South Africa, adding between a week and 20 days to their journeys.
European markets depend on this route to import goods from Asian and African countries, such as coffee from Vietnam, Indonesia, Ethiopia and Kenya, as well as other necessary goods that are usually transported by containers.
The Israeli Ministry of Finance: Maritime trade accounts for 70% of Israel’s imports, and 98% of its foreign trade passes through the Red and Mediterranean Bahrain. Trade through the Red Sea also contributes 34.6% to the Israeli economy.
The Egyptian Suez Canal connects the Red Sea to the Mediterranean, and for decades was considered the fastest way to ship fuel, food, and consumer goods from Asia and the Middle East to Europe.
The attacks have already led to delays in the delivery of products intended for many companies, as companies such as Walmart, IKEA, and Amazon use the Suez Canal route. In addition, the attacks inflicted heavy losses on the Israeli economy, as the port of Aqaba became almost non-functional.
Maritime trade accounts for 70% of Israel’s imports, and 98% of its foreign trade passes through the Red Sea and the Mediterranean. Trade across the Red Sea also contributes 34.6% to the Israeli economy, according to the Israeli Ministry of Finance.
High sea freight costs
This reality has led to an increase in sea freight costs, according to the international freight booking and payment platform (Fretos), which reported that sea freight prices from Asia to Northern Europe have more than doubled, exceeding four thousand dollars per 12-meter container this week, and prices have increased. From Asia to the Mediterranean to more than five thousand dollars.
North American ports were also affected by this crisis, albeit to a lesser extent than their European counterparts, as up to 30% of goods arriving on the East Coast of the United States pass through the Suez Canal. Experts in the field of maritime transport expect that the authorities will transfer part of these imports to the west coast of the Pacific Ocean, which is relatively closer to Chinese and other Asian sources.
America warns the Houthis of “consequences”
In response to the attacks, the United States informed the UN Security Council last Wednesday that Houthi attacks from Yemen on commercial ships threaten “rights and freedom of navigation” in the Red Sea, and constitute “a global challenge that requires a global response.”
Washington and 11 allied countries urged the Houthis to “immediately stop their illegal attacks” on ships in the Red Sea, under penalty of “bearing the consequences.”
This coalition of countries said in a statement, “The Houthis must bear responsibility for the consequences if they continue to threaten lives, the global economy, and the free movement of goods in the region’s essential waterways.”
Houthis: Our operations are ethical and Israel must be pressured to stop its war on Gaza
Muhammad Al-Bukhaiti, a member of the political bureau of the Ansar Allah group (Houthis), assured Monte Carlo that the operations of the Yemeni naval forces are ethical and will continue until the crimes of genocide in Gaza are stopped and food, medicine and fuel are allowed to enter the population.
Muhammad Al-Bukhaiti: We target ships linked to Israel, and the goal is not to seize or sink them, but rather to divert them from their course towards the Good Hope Road to raise the economic cost and put pressure to stop crimes in Gaza.
In his response to the American call to stop attacks in the Red Sea, he said, “I advise the countries that threatened Yemen in their joint statement to seek to stop crimes in Palestine and not protect their perpetrators, and to address the causes of the problem, not its results, because our military operations are a reaction to what is happening in Gaza.” Whether from killing or from siege.”
Al-Bukhaiti explained that the Houthi attacks “only target ships linked to Israel, and the goal is not to seize or sink them, but rather to divert them from their course in order to use the Good Hope Road to raise the economic cost on the entity as a pressure card to stop crimes in Gaza, and also to force it to allow the entry of food and medicine.” And also fuel for Gaza.”
He added, “In general, our operations will continue, regardless of the sacrifices it costs us, because our goal is moral, and they are also the first to violate international law, because international law does not, in any case, allow any party to target civilians and commit massacres and genocide against them.”
The leader of the Houthi group concluded by saying, “We hoped that these countries would seek to pressure Israel to allow food, medicine, and fuel to enter Gaza instead of issuing these statements or threatening Yemen.”
American preparations to strike Yemen
In this context, the Wall Street Journal quoted American officials as saying that the American army had prepared options to strike the Houthis in Yemen.
The newspaper quoted the US Central Command as saying that the Houthis had carried out 24 attacks on commercial ships since mid-November.
Last October, the Houthis announced their solidarity with the besieged Gaza Strip, and that they were about to attack Israeli ships heading to Israeli ports or operated by Israeli companies until the Israeli army stopped its bombing of the Strip.
About a month after the Houthis began targeting cargo ships, US Secretary of Defense Lloyd Austin announced, on December 18, the formation of a naval task force called the “Guardian of Prosperity,” which includes 10 countries, including one Arab country, Bahrain, with the aim of confronting attacks at sea. the Red.
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2024-01-04 11:50:39
