Shell, BP, and Qatar Energy have decided to suspend all shipments through the Red Sea indefinitely due to ongoing Houthi attacks on commercial vessels from Yemen. The suspension was first reported by The Wall Street Journal, with unnamed sources confirming the decision. This move is expected to have a significant impact on prices for consumer goods, according to a statement from port and freight operator DP World.
The Iranian-backed Houthi rebels have launched numerous missiles and drones at commercial vessels in the Red Sea since November. These attacks, which have grown increasingly indiscriminate, have endangered tankers and container ships carrying sanctioned Russian oil. The Red Sea is a crucial route for global seaborne oil trade, with approximately 12% of total trade passing through the region.
In response to the attacks, the United States, with assistance from the United Kingdom, has led airstrikes targeting Houthi positions. However, this has prompted the rebel forces to vow to expand their attacks on ships. To counter the threat, the US recently carried out another strike on Houthi targets in Yemen, successfully destroying four Iran-provided Houthi anti-ship ballistic missiles.
The impact of the attacks was recently felt when a Malta-flagged, Greek-owned bulk carrier was struck by a missile in the Red Sea while sailing from Vietnam to Israel. This incident highlights the dangers faced by vessels navigating through the region.
As a result of these ongoing attacks, tanker owners are now avoiding the Red Sea, opting to sail around Southern Africa instead. While this rerouting is a safer option, it adds significant time and costs to shipping operations.
The situation in the Red Sea has raised concerns about the potential for a broader conflict and its impact on the trade route through the Suez Canal. Any disruption to this crucial trade route could have severe consequences for global trade and economies.
With Shell, BP, and Qatar Energy joining other companies in suspending shipments through the Red Sea, the repercussions are likely to be felt by consumers worldwide. The resulting higher prices for goods will impact individuals and businesses alike, highlighting the urgent need for a resolution to the ongoing conflict in Yemen.
“Zombie enthusiast. Subtly charming travel practitioner. Webaholic. Internet expert.”