Yemen’s Iran-backed Houthi militia claimed responsibility for a missile attack on Tuesday on a container ship in the Red Sea, and for an attempt to attack Israel with drones.
MSC (Maersk) Mediterranean Shipping said there were no injuries to its crew from the attack on its ship, the United VIII, en route from Saudi Arabia to Pakistan. It said the ship had informed a nearby coalition naval warship that it had come under attack and had taken evasive maneuvers.
The reported incidents come a week after the United States announced a multinational maritime security initiative in the Red Sea in response to attacks on vessels by Yemen’s Houthis.
Several shipping lines have suspended operations through the Red Sea waterway in response to the attacks, instead taking the longer journey around Africa. The Maersk shipping company must have been trying to follow through on its earlier announcement to resume operations through the Red Sea. The ship attacked on Tuesday would not have been in the Red Sea if they were not trying to use the Red Sea route.
It takes 26 days to ship from Europe to Singapore via the Red Sea versus 36 days to go via Africa. Using the Africa route puts ten days of delays in one third of global trade and adds costs. This increases global supply chain problems which are still recovering from Pandemic related supply chain issues.
There would also be about 10% more oil and energy used overall total global shipping trade using the Africa route.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
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I like mixing in highly informed, fact-driven, niche expert opinions I don’t see elsewhere.
One of the YT channels I watch is “What’s up with shipping”. It’s centered around international shipping news and conditions.
His latest video covers the same points as above, but provides tons of facts, specifics, and analysis.
https://m.youtube.com/watch?v=wysnpoSMn54
Among many other things, he talks about current vessel positions, movements, insurance rates in general, and based on cargo.
He also talks on how the shippers may end up making bank if all’s quiet next year, because they’re setting the new shipping rates now, to kick in in January 2024, after this year’s contract expires.
That last bit is interesting as the majority of the shipping contracts for 2024, going in and out of Asian ports will be set based on the current costs of higher insurance, and the higher fuel and labor costs associated with going round the Horn of Africa.
Those extra costs could disappear with a return to a calmer Red Sea before January ends, turning into higher profit margins for the rest of the year.
While the US military is footing most the bill for the operation to keep the Red Sea open.
Much more detail in vid, of course.
Iran is becoming a growing challenge to world progress. It’s a squid that is sending arms around the middle eas and beyond, crippling countries and destabilizing others around them. The way to handle this situation is to hit the squid on its head.
It’s funny you say that because the U.S. has been prepared to fight Iran, head on, for a couple of decades now. Iran knows this…that’s why they have to sneak around while avoiding head-on engagement.