VIDEO. Ships attacked by Houthis in the Red Sea: ‘this could affect prices’

Within weeks, Bab al-Mandeb has been the scene of attacks by the Houthis, Yemeni rebels close to Hamas, on merchant ships they consider to be “linked to Israel.” The strait, located at the southern tip of the Red Sea, separating Yemen on the Arabian Peninsula from Djibouti and Eritrea in Africa, is like a veritable “highway” connecting Asia to Europe through the Red Sea and the Suez Canal. According to the London-based International Chamber of Shipping (ICS), 12% of global trade typically passes through the Red Sea. The Pentagon, for its part, suggests 10 to 15%.

But following drone and missile attacks on merchant ships, and the recent hijacking of a cargo ship by Yemen’s Houthi rebels, shipping giants including France’s CMA CGM and Britain’s BP announced they would no longer use the strait. Late Monday, the US defense secretary announced the formation of a 10-nation coalition in the Red Sea to counter repeated attacks by the Houthis.

“This will extend the deadline.”

A situation that risks having economic consequences and a potential “impact on prices,” assesses Anne-Sophie Alsif, chief economist at BDO France. “It blocks containers during the holiday period, which prolongs delays. Another effect is that components of some finished products are blocked and do not interfere with the production of the product,” says the economist. The main decision for carriers: change the route in favor of the Cape of Good Hope, explains Jean-Charles Ramaromisa, CEO and head of chartering at Pelagos. “The ship that will leave with wheat from Ukraine to China through the Suez Canal will be at sea for 27 days. Passing the Cape of Good Hope, the journey will increase to 48 days,” explains the ship broker. “If the situation continues, shipowners will include this in their freight costs. And this will be felt in consumer bills,” he continues. “There is no risk of a shortage,” estimates Anne-Sophie Alsif, “on the other hand, it could affect prices next year if the situation continues.”