More than a hundred container ships are opting to circumnavigate Africa to avoid violence in the Red Sea due to attacks on commercial vessels by Houthi militants based in Yemen, resulting in increased costs and delays, Bloomberg reports.
The attacks, viewed as an escalation of the Israel-Hamas conflict, have led to concerns and disruptions in global trade. The US and its allies are considering responses, including a possible task force to address the Houthi threat.
Shippers are facing increased costs, delays, and disruptions, with potential impacts on insurance premiums, freight rates, and oil prices. The situation is seen as potentially more impactful than the Suez Canal shutdown in 2021, but the overall economic impact is expected to be moderate.
