Defence Intelligence Agency: Red Sea container shipping down by 90%

Container shipping through the Red Sea has declined by approximately 90% since December 2023 as a result of Houthi attacks, according to a report published by the US Defence Intelligence Agency (DIA).

The report, entitled Yemen: Houthi Attacks Placing Pressure on International Trade, follows the DIA’s February report describing the Houthis’ use of Iranian missiles and unmanned aerial vehicles to conduct attacks in the Middle East.

Since November last year, the Houthis have conducted dozen attacks against commercial ships and have defied the United Nations and other international organisations that have called for an end to their maritime aggression.

On June 14, the International Secretary-General Arsenio Dominguez issued a statement following an attack on the merchant vessel Tutor.

Dominguez noted that he was “appalled at the fact that seafarers going about their work continue to be targeted and injured” and called to attention that one crew member was unaccounted for at the time of his statement.

He added: “I strongly condemn any type of attack against international shipping, regardless of its motivation or cause.

“I demand all governments and relevant organisations to provide maximum assistance to seafarers affected, and to spare no effort in finding a resolution to this crisis.

“This situation cannot go on. Everybody is going to feel the negative effect if international shipping is not able to trade as normal. But our commitment is, above all, safeguarding the safety of all seafarers.”

Shipping via the Red Sea typically accounts for approximately 10-15% of international maritime trade but many have opted for alternate shipping routes around Africa as a safer alternative.

According to the DIA report, for many shipping companies the combined costs of crew bonuses, war risk insurance (roughly 1000% more than pre-war costs) and Suez transit fees make the additional time and financial costs traveling around Africa less expensive in comparison.

These alternate shipping routes add about 11,000 nautical miles, one to two weeks of transit time and approximately US$1m in fuel costs for each voyage.

The DIA identified at least 29 major energy and shipping companies have altered their routes due to the Houthi attacks, including CMA CGM, COSCO Shipping, Evergreen, Maersk and more, and at least 65 countries interests have been affected.

Source: Container Management

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