Since November 19, 2023, Houthi militants based in Yemen have been carrying out attacks on commercial ships in the Bab-el-Mandeb Strait and the Suez Canal in the Red Sea. This has disrupted maritime security, causing global shipping companies to suspend operations through the Red Sea. This route typically handles about 15 percent of the world's maritime trade. As a result, commercial ships are now taking the longer Cape of Good Hope route via Southern Africa, leading to increased transit times (an average of 20 extra days) and higher logistics costs. The disturbance in Red Sea shipping has resulted in heightened transit risks, increased freight and operational costs, and shipment delays.
According to a report by the UN Trade and Development Agency (formerly known as UNCTAD), the amount of ship tonnage entering the Red Sea decreased by more than 70 percent between the first half of December 2023 and February 2024.
Ethiopian importers and exporters have stated that the Red Sea Shipping crisis is causing longer transit times, high freight charges, and shipment delays. This maritime security threat created unpredictable shipping schedules and limited availability of container vessels. Major international shipping lines like Maersk have either suspended or reduced operations. Additionally, after an increase in shipping attacks by the Houthis in the Red Sea in June 2024, the Mediterranean Shipping Company (MSC) reportedly suspended most of its operations on the Red Sea via Djibouti and Berbera ports.
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Source: apps.fas.usda.gov