The Houthis have attacked dozens of ships in the Red Sea. Price increases are contained but delivery times are increasing.
Consumers are for the moment spared from the consequences of the crisis in the Red Sea. The increase in prices caused by attacks on merchant ships is contained. THE delivery delay are on the rise, particularly for furniture and cars.
Change of direction
“A number of large companies, particularly container lines, have made the decision to divert their ships from the Red Sea and will instead circle the southern coast of South Africa, around the Cape of Good Hope, which adds around 9,000 km to the journey, and between six and fourteen daysdepending on the type of ship”, explains Guy Platten, Secretary General of the International Chamber of Shipping.
This change of direction will cause “delivery disruptions and delays”, and could have a “impact on prices“, warns Guy Platten.
The Red Sea is a key communications route, through which nearly 12% of global goods.
These exchanges represent a value of more than trillion dollars a year.
Bottleneck
The Houthis have the capacity to threaten shipping, particularly at the “southern end of the Red Sea in the Bab-Al-Mandab Strait“, between Yemen and Djibouti, explains Chris Doyle, director of the Council for Arab-British Understanding.
The Bab-Al-Mandab Strait is approximately 32 kilometers wide. “A bottleneck“, says Chris Doyle.
The Houthis are a pro-Shiite group, supported by Iran.
They attacked dozens of ships to support the Palestinians in the war between Israel and Hamas, sparking fears of an escalation of the conflict and a conflagration of the region.
Multinational coalition
Also, the United States founded a multinational coalition against the Houthis joined by more than twenty countries. Military ships have also been sent to the Red Sea to try to restore security in the region.
The task turns out to be difficult.
“The Houthis have said they will continue these attacks as long as the Israeli attacks on Gaza would continue,” says Chris Doyle, director of the Council for Arab-British Understanding.
“It’s about tapping into the deep anger aroused by the massive destruction, the loss of civilian lives in Gaza and the Israeli bombings,” he analyzes.
The United States and its allies have several options, explains the researcher: to be “very aggressive” or “neutralize some of the” Houthi positions, “although this will be very difficult in the hills of Yemen”.
The Houthis sent missiles to “Saudi Arabia” And “the United Arab Emirates“, hitting strategic targets, including “vital oil infrastructure”, explains Chris Doyle, who speaks of a “massive escalation”.
“Doing nothing could also be very problematic,” he warns.
Environmental cost
Meanwhile, increased fuel consumption caused by longer trips has a environmental impact.
“There is a cost that will be certain. It is the environmental cost that our planet will have to pay,” analyzes Gokcay Balc, assistant professor of logistics and supply chain at the University of Bradford.
The researcher plans a 25 to 30% increase in carbon emissions additional. He also recalls that the shipping industry is responsible for 3% of all emissions worldwide.
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