By Muhammed Hubeysa
ISTANBUL (AA) – World's top oil and shipping companies have started suspending operations through the Red Sea and are rerouting their vessels as Houthis step up attacks, shifting global trade from the vital corridor.
The Bab al-Mandeb Strait, southwest of Yemen in the Red Sea, has been on the agenda of the international press for about a month due to the Israel-Palestine conflict.
The Yemen-based group in November said it would target all commercial ships having links to Israel or Israelis "in solidarity with Palestine." Israel has killed more than 19,000 Palestinians in Gaza since the Oct. 7 cross-border attack by Hamas.
There have been swift responses from major shipping companies including the Mediterranean Shipping Company, Maersk, Hapag-Lloyd, CMA CGM, as well as oil giant BP, who have paused their shipments through the Red Sea, raising global concerns over the volatility in global supply chains between the East and West, potentially extending shipping times and increasing freight costs, which could in turn lead to inflation.
Located between the Arabian Peninsula and Africa, the Bab al-Mandeb Strait connects the Red Sea to the Gulf of Aden and the Indian Ocean.
With the construction of the Suez Canal in the north of Egypt, the Bab al-Mandeb Strait, which forms part of the connection between the Mediterranean and East Asia, gained strategic and economic importance.
Data by the World Trade Organization shows the strait shortens sea voyages by an average of 14 days compared to other alternative routes.
The cancellation of crossings through the strait means that tankers and cargo ships from Asia or the Persian Gulf region are prevented from reaching the Suez Canal, which carries 12% of global trade, therefore redirecting their route to the southern tip of Africa via the Cape of Good Hope.
According to the International Energy Agency, about 10% of the oil transported daily by sea passes through the Bab al-Mandeb Strait.
The failure of ships to use the strait could lead to fluctuations and pressure in energy supplies.
According to estimates, an average of 22,000 sea vehicles pass through the Bab al-Mandeb Strait annually. This means about 60 sea vehicles pass through the strait per day.
The US, meanwhile, has announced a multinational force to protect trade in the Red Sea. Defense Secretary Lloyd Austin said on Monday that Bahrain, Canada, France, Italy, the Seychelles and the UK would be among the countries joining the 10-nation “multinational security initiative.”
- Houthi threats: A timeline
Nov. 19: Houthis seize cargo ship owned by the UK and operated by Japan in south of Red Sea.
Dec. 3: Houthis say two Israeli ships, Unity Explorer and Number Nine, targeted.
Dec. 9: Houthis warn all international shipping companies not to do business with Israeli ports, saying they would target all ships going to Israel.
Dec. 12: Houthis military spokesperson Yahya Seree says Norwegian ship carrying oil and heading to Israel hit by naval missile.
Dec. 15: Houthis target two Liberian-flagged container ships heading to Israel.
Dec. 15: Denmark-based Maersk shipping company halts container vessels passing through Red Sea.
Dec. 16: US Central Command says it shot down more than a dozen drones in Red Sea launched from Houthi-controlled areas of Yemen.
Dec. 16: Mediterranean Shipping Company (MSC), Hapag-Lloyd, and CMA CGM suspend voyages through Red Sea.
Dec. 18: BP halts all shipments of oil and gas through Red Sea.
Dec. 19: US announces 10-nation coalition to counter Houthi attacks in Red Sea.
*Writing by Merve Berker