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Red Sea Shipping Impacted by Houthi Action

12/19/2023

Missiles fired by Houthi terrorists in Yemen aligned with and supported by Iran have obstructed shipping in the Red Sea.  A number of major shipping lines including A.P. Moller-Maersk and Hapag-Lloyd have opted to avoid the Suez Canal and sail around the Cape of Good Hope adding three or more weeks to voyages between Europe to Asia. The International Chamber of Shipping stated that the assaults on merchant vessels amounted to “an extremely serious threat to international trade”.

The attacks have prevented passage of both oil tankers and container vessels and will ultimately add to the cost of commodities and manufactured goods unless free passage is restored.  Currently, U.S. naval vessels, including USS Carney, stationed in the Red Sea have interdicted missiles. More aggressive action by other navies in coordinated action will become a reality as arranged by Secretary of Defense, Gen. Lloyd Austin.

 

It appears that Iran is the major supporter and supplier of weapons to extremist movements including the Houthis, Hezbollah and Hamas. This Nation, close to acquiring a nuclear capability, should be the point of pressure to defang insurgents and terrorists. If firm action is not applied by the international community the cost of sea-freight will continue to rise contributing to problems with supply chains and the risk of reversion to inflation. At present the capacity of the Panama Canal is affected by drought and traffic through the Suez Canal has now been reduced by the action of a gang of terrorists.