Houthi attacks on ships in the Red Sea lead to a sharp rise in shipping companies' costs
Kyiv • UNN
The Houthi attacks on civilian tankers in the Red Sea and Gulf of Aden have led to increased costs for shipping companies due to higher insurance premiums and additional expenses, which has seriously affected international maritime trade in the region.
Due to Houthi attacks on civilian tankers in the Red Sea, shipping companies' costs are increasing. This is stated in a report by the US Defense Intelligence Agency, UNN reports, citing Voice of America.
Details
The report states that Houthi attacks on ships in the Red Sea and Gulf of Aden have affected at least 29 companies from 65 countries, resulting in increased costs. The companies have to pay higher insurance premiums and incur additional staff costs due to the constant attacks on international shipping by Yemeni Houthis.
As of mid-February, insurance premiums for transit through the Red Sea increased to 0.7-1.0% of the total cost of the vessel, although they did not exceed 0.1% until December 2023
The report also notes that companies that continue to transit through the region face increased costs for additional "war risk" insurance and crew compensation.
As a result, the Authority estimates that container traffic through the Red Sea, which typically accounted for up to 15% of all international maritime trade, fell by 90% from December 2023 to mid-February 2024.
Shipping companies seeking to avoid the Red Sea are also seeing an increase in costs: sailing around Africa is about $1 million more expensive.
Recall
In June, in the Gulf of Aden, the Houthis launched a strike with two anti-ship cruise missiles on the Ukrainian-owned ship Verbena. The attack wounded a civilian sailor who was evacuated by a US warship.
