Significant Houthi Rebel Assault Raises Concerns in Red Sea Shipping Crisis

The recent attack on the M/V True Confidence in the Red Sea has highlighted the difficulty of ensuring safe passage along this vital trade route. This was the first fatal assault on a commercial vessel by Iran-backed Houthi rebels since they started targeting ships late last year.

The attack resulted in the tragic loss of at least three crew members, with four others sustaining injuries. The M/V True Confidence, a Liberian-owned bulk carrier, was targeted in the assault. These ships are responsible for transporting dry cargo like grain and iron ore.

The recent deadly strike by Houthi rebels represents a serious increase in their attacks on ships in the Red Sea, despite efforts by a US-led naval coalition to safeguard the vital waterway. In addition, this attack follows a previous incident where a cargo ship was sunk, releasing fertilizer into the ocean.

According to maritime risks analytics company Windward, there has been a decrease in the number of ships traveling through the Red Sea and the adjacent Suez Canal after the most recent attack. Since carriers began avoiding the area in December and redirecting their vessels around the southern tip of Africa, transit numbers have significantly declined.

Windward reported a 225% increase in the number of bulk carriers anchoring outside ports to the north and south of the Suez Canal on Wednesday. According to Windward CEO Ami Daniel, 61% of these ships anchored after 13:30 UTC, which was the time of the attack.

Daniel anticipates that more bulk carriers will avoid the Canal following the attack. The Suez Canal handles 10-15% of world trade and 30% of container trade. He mentioned that the likelihood of future incidents is higher than expected, and the impact of such events is more severe than previously believed.

Windward data shows that last month the number of bulk carriers in the Red Sea was already at its lowest level in two years.

Oil tanker transits to fall

The Houthis have carried out over 45 missile and drone attacks on commercial, US, and allied naval ships in the Red Sea, as reported by US and Western officials.

Many of these attacks have been stopped or have landed without causing harm in the water. This recent attack on Wednesday has caused even more concern, possibly leading shipping companies still using the waterway to reconsider their routes.

Peter Sand, chief analyst at Xeneta, a shipping analytics company in Norway, expressed concern that a critical point may have been reached with the recent casualties.

According to Sand, only 30% of the typical shipping capacity, which includes container ships, bulk carriers, car carriers, and tankers transporting oil and liquefied natural gas, is currently moving through the Red Sea and Suez Canal.

He told CNN that he expects the deadly attack to cause the level to drop even further. He mentioned that mainly oil tankers are still passing through, and we can expect them to decrease in numbers as well.

Seafarers are considered to be on the front line in this situation.

The assault indicates that it may take several months to resolve the crisis. This means that big container shipping companies like Maersk, MSC, and Hapag Lloyd will still have to send their ships around Africa, which is a longer and more expensive route. As a result, the costs of transporting goods will remain high.

Container shipping costs on major trade routes have remained high, with rates more than double compared to December. This information comes from data provided by Drewry, a shipping consultancy based in London.

Last week, French container shipping company CMA CGM announced that it would be resuming some transit through the Red Sea on a case-by-case basis. When asked about potential changes in their approach after a recent attack, the company did not respond to a query from CNN.

The International Transport Workers’ Federation is urging the shipping industry to reroute ships away from the Cape of Good Hope until it is safe to travel through the Red Sea.

According to the organization’s secretary-general, Stephen Cotton, they have been cautioning the international community and maritime sector about the increasing dangers seafarers are encountering in the Gulf of Aden and Red Sea.

Following the attack, Cotton told CNN that it may become harder to hire seafarers. Basic pay for many working in the Red Sea and Gulf of Aden has already doubled due to recent bargaining agreements.

David Ashmore, an employment lawyer at global law firm Reed Smith, shared a similar sentiment. He mentioned that in a world facing a shortage of maritime workers, safety concerns like these only make the hiring process more challenging.

John Stawpert, senior manager for the environment and trade at the International Chamber of Shipping, highlighted that the recent incident further proves their long-standing concern that seafarers are the ones most affected by the crisis.

He emphasized that seafarers are at the forefront of these challenges and expressed their belief that it was only a matter of time before the attacks by the Houthis led to such a tragic outcome.

Editor's P/S:

The recent attack on the M/V True Confidence in the Red Sea is a stark reminder of the dangers that seafarers face in this region. The attack, which resulted in the tragic loss of three crew members, is a clear escalation in the conflict between the Iran-backed Houthi rebels and the US-led naval coalition. The attack has also had a significant impact on shipping traffic in the Red Sea, with many companies now avoiding the area.

The attack is a reminder of the importance of the Red Sea as a vital trade route. The Suez Canal, which connects the Red Sea to the Mediterranean Sea, handles 10-15% of world trade and 30% of container trade. The attack on the M/V True Confidence has raised concerns that the conflict in the Red Sea could disrupt global trade. The attack has also highlighted the need for the international community to do more to protect seafarers from the dangers of piracy and terrorism.