Page 32 - Ever Given News Today

Bab al-Mandab is a narrow strait between Africa and the Arabian Peninsula through which an estimated 12% of global trade by volume normally flows, and perhaps 30% of global container traffic. It has become a no-go zone as the Houthis attack shipping.

The recent attacks on ships in the Red Sea are an early warning sign that another international supply chain crisis could happen in the immediate future.

If attacks in the Bab el-Mandeb Strait escalate, freight rates for shippers moving product in the waterway could double, one analyst said.

Spiraling attacks on merchant ships by Houthi militants off the coast of Yemen have prompted widespread trade disruption with some of the world’s biggest vessel owners evaluating whether it’s safe to send crews through the Red Sea.

Iranian-backed Houthi militants from Yemen have attacked container ships amid Israel’s war with Hamas.

 

Two of the worlds largest container shipping lines said on Friday that they were pausing transits through the Red Sea after their vessels were attacked.

Two of the world's largest shipping companies said Friday they were pausing operations in the critical route, which could have a domino effect on trade flows worldwide.

Major Shipping Companies Alter Routes Amidst Security Concerns - World Report Now

A supply chain expert says if shipping attacks escalate in the Red Sea, shipping prices are likely to increase, and there could be major delays worldwide.