US intelligence released its first official evaluation of the economic consequences resulting from Houthi rebel attacks on merchant ships in the Red Sea. According to US intelligence officials, container shipping through the region declined by 90% from December to February due to these attacks.
According to Bloomberg report, the assessment revealed that the Houthi campaign affected a minimum of 65 countries and forced at least 29 prominent companies in the energy and shipping sectors to change their shipping routes.
The alternative routes circumnavigating Africa added approximately 11,000 nautical miles to each trip, leading to a surge in fuel expenses of roughly $1 million per voyage, as per the rare public assessment by the Pentagon’s Defense Intelligence Agency.
The Defense Intelligence Agency said, “Threats to Red Sea transits are compounding ongoing stress to global maritime shipping caused by interruptions at the Panama Canal due to drought.”
A commodities carrier called Tutor on Wednesday suffered severe flooding in its engine room following the first successful attack from a seaborne drone during the current Houthi campaign. Furthermore, on Thursday, a small cargo ship caught fire after being struck by two projectiles.
The United States and the United Kingdom have conducted numerous airstrikes targeting the Houthis, a group based in Yemen, in an effort to limit their capacity to attack vessels in the area and also, sought to restrict the Houthis’ income sources and impose additional economic penalties. However, the group remains undaunted, and the economic consequences continue to expand.
According to the report, assistance destined for Sudan and Yemen has been postponed by several weeks due to the necessity of taking more circuitous routes around the African continent.
Last year, the Houthis initiated attacks to exert pressure on Israel and its allies regarding the conflict in the Gaza Strip.
According to Bloomberg report, the assessment revealed that the Houthi campaign affected a minimum of 65 countries and forced at least 29 prominent companies in the energy and shipping sectors to change their shipping routes.
The alternative routes circumnavigating Africa added approximately 11,000 nautical miles to each trip, leading to a surge in fuel expenses of roughly $1 million per voyage, as per the rare public assessment by the Pentagon’s Defense Intelligence Agency.
The Defense Intelligence Agency said, “Threats to Red Sea transits are compounding ongoing stress to global maritime shipping caused by interruptions at the Panama Canal due to drought.”
A commodities carrier called Tutor on Wednesday suffered severe flooding in its engine room following the first successful attack from a seaborne drone during the current Houthi campaign. Furthermore, on Thursday, a small cargo ship caught fire after being struck by two projectiles.
The United States and the United Kingdom have conducted numerous airstrikes targeting the Houthis, a group based in Yemen, in an effort to limit their capacity to attack vessels in the area and also, sought to restrict the Houthis’ income sources and impose additional economic penalties. However, the group remains undaunted, and the economic consequences continue to expand.
According to the report, assistance destined for Sudan and Yemen has been postponed by several weeks due to the necessity of taking more circuitous routes around the African continent.
Last year, the Houthis initiated attacks to exert pressure on Israel and its allies regarding the conflict in the Gaza Strip.
