Despite Houthi hits, Tankers keep Crossing
Sudan Events – Sumaya Sayed
The number of tankers passing through the Suez Canal has dropped following the surge in attacks by the Iranian-backed Houthis on ships entering the Red Sea last month, however, while some vessels have chosed to avoid the region, the majority of tankers continue to use the route, according to experts.
A report by Kpler, which specializes in commodities market data and analytics solutions, shows transit count in recent days has increased again and freight rates for vessels traveling through Bab-el-Mandeb strait have also dropped, suggesting the risk premium has peaked.
The Houthis, who control much of Yemen, have stepped up attacks on vessels in the Red Sea by as much as 500 percent in the latest fallout from the Israel-Hamas war in the Gaza Strip, leading to aftershocks in global supply chains and a predicted rise in trade and commodity prices. Over the past month, the Houthis – who say they are acting in support of Palestinians in the Israel-Hamas war in Gaza – have fired drones and missiles at passing ships in the crucial waterway.
The attacks continue to impact a major artery in East-West trade, especially for oil, as ships access the Suez Canal via the Red Sea. These attacks have led to several shipping and cargo companies worldwide suspending their operations through this vital trade route and seeking alternative, costlier options.
