SANAA: International shipping companies abandoning cargo through the Red Sea in the wake of Houthi attacks, experts say, will cause movements in the global economy. Maersk and Hepag Lloyd, the big shipping companies, have announced the cancellation of this route. The Houthis declared their support for Hamas and launched attacks on ships bound for Israel. The US Navy ship HMS Diamond, which was escorting a merchant ship on Saturday, was also attacked by drones.
Why the Red Sea?
The Red Sea is a narrow sea between the Arabian Peninsula and Africa, with a maximum width of 355 km and a length of 2250 km. The Red Sea is connected to the Strait of Aden in the south. From there you can reach the Arabian Sea and the Indian Ocean. The Red Sea is accessed through the Babul Mandab bordering Yemen on the Arabian Peninsula and Djibouti and Eritrea on the African Cape. Perim Island in this sea area cuts the waterway in two. Larger ships use the wider and deeper western channel. Its width at its narrowest part is 25 km. Depth 310 meters. The channel near the Yemen coast is only two miles wide.
the red sea Graphics courtesy – US Energy Information Administration
According to estimates by fuel analysis company Vortexa, 7.80 million barrels of crude oil and fuel shipments per day passed through Babul Mandab in the first eleven months of 2023. In 2022, it was only 6.60 million barrels. About 12 percent of oil shipments and 8 percent of liquefied natural gas by sea pass through it. It is estimated that 17,000 ships pass through it every year.
What if closed?
Although currently fraught with conflict, cargo through the Red Sea is unlikely to be a long-term problem. Easy shipping companies to Europe and North America will not abandon this waterway.
The only alternative to the voyage via the Red Sea was to go around the southern tip of Africa. At present, the distance from Babul Mandab to Port Said on the Mediterranean coast is 2383 km. When you go around, it becomes too much.
Waterway to be bypassed if the Red Sea is closed (in yellow); Graphics courtesy of – The Cradle
For example, the distance from the port of Fujairah in the Persian Gulf to the port of Houston in North America by Red Sea is 10739 miles. A trip via the African Cape would take an additional 2,660 nautical miles. It takes 22 days from Saudi Arabia to Rotterdam port in Netherlands via Babul Mandab. It is estimated that its duration will be 39 days when it goes through Africa.
Shipping and fuel costs are higher for longer trips. This will lead to an increase in commodity prices. An increase in the price of essential fuel can easily affect other sectors. As it affects the Gulf, the crisis will make it difficult for countries including India.
It is estimated that in March 2021, the trade loss of 54 billion dollars was incurred in the global economy in just six days when the Evergreen container ship got stuck in the Suez Canal.
Current status
The Danish shipping giant Merck and the German company Hapag Lloyd have announced that they are currently suspending the journey through the Red Sea. The Houthis’ move is in solidarity with Hamas. Houthi Information Minister Daifallah al-Shami has stated that all ships contacting Israeli ports will be blocked.
Seven ships have been attacked since the start of the Israel-Hamas conflict. Efforts to resolve the problem and secure the waterway have been initiated by the US. The US has also raised the issue of the 39-member Combined Maritime Force. The US has also sought the help of warships from countries including Australia. But the Iran-backed Houthis are signaling that they will not give in easily.
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2023-12-16 11:46:50
