The response by Houthi terrorists, supported by Iran to the invasion of Gaza has now persisted for three consecutive quarters.  Passage of container vessels through the Suez Canal and the Red Sea is reduced to a trickle with shippers routing vessels around the Cape of Good Hope adding time and cost to shipments.  The Bab al-Mandab Strait is the major choke point but missile attacks have extended into the Gulf of Aden. Houthi rebels supplied with missiles by Iran and now most recently Russia have forced all major shipping lines to use alternatives to passage through the Red Sea.

Last week, shipping was halted around the Cape of Good Hope by inclement weather.  With the approach of the typhoon season in southeast Asia, further disruptions can be expected leading to escalation in freight cost and disruptions of supply chains.