WASHINGTON (dpa-AFX) - Houthi rebels have been carrying out a series of missile and drone attacks in the Red Sea since November, posing a dilemma for shippers using the Suez Canal.
The attacks, which are said to be targeting ships based in Israel or traveling to Israel in protest of the Israeli conflict in Gaza, have disrupted trade between Europe and Asia. Consequently, major shipping companies have largely ceased operations in the Red Sea and are opting to sail around Africa, leading to schedule disruptions and increased fuel costs.
In the most recent incident, the Houthi rebels targeted two U.S.-flagged merchant ships, Maersk Detroit and Maersk Chesapeake, which were escorted by the navy in the Red Sea, marking the group's latest aggressive move in the region. Due to the heightened risk, Maersk Line, Limited (MLL) has chosen to suspend transits in the area until further notice.
Reports indicate that ships at risk of Houthi attacks are facing significantly higher insurance premiums, while vessels avoiding the region are losing time by circumnavigating Africa. Shipping expenses have already soared, including a shortage of empty shipping containers due to the additional time needed for voyages around Africa's Cape of Good Hope.
The use of the Red Sea now requires costly war risk insurance, which has spiked in recent weeks for container ships or tankers passing through the Bab al-Mandeb strait off Yemen en route to the Suez. Marine war risk premiums have surged around fiftyfold since before the war, reaching as high as 1 percent of the ship's value, although approximately 0.7 percent appears to be more typical. This results in an additional $700,000 for a ship carrying goods valued at $100 million for the few days needed to cross the Red Sea area.
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