The United States Launches Offensive Against Houthi Anti-Ship Missiles, Escalating Shipping Disruptions
On January 18, the United States initiated fresh strikes against Houthi anti-ship missiles aimed at the Red Sea. These strikes targeted two anti-ship missiles being prepared by Yemen’s Houthi rebels, considered an imminent threat to shipping and U.S. Navy vessels in the region. The ongoing attacks by the Iran-allied Houthi militia have disrupted global trade in the Red Sea, causing concerns about supply bottlenecks and potential inflation.
The Genco Picardy, a U.S.-operated vessel, was attacked in the Gulf of Aden on Wednesday, leading to a fire onboard. The Indian Navy successfully rescued the 22 crew members, including nine Indians. The Houthi militia, claiming solidarity with Palestinians, has threatened to target U.S. ships in response to American and British strikes on their positions.
Despite the U.S. military strikes, President Joe Biden acknowledged that they had not halted Houthi attacks, stating that the military response would continue. The Pentagon emphasized that the strikes were defensive acts to protect the seas and not an indication of war with the Houthis.
The attacks on shipping routes in the Red Sea, responsible for 15% of global shipping traffic, have raised concerns about stretched supply chains. Alternative routes, such as around South Africa’s Cape of Good Hope, could add significant time to journeys compared to the Red Sea and Suez Canal. The crisis is impacting revenue from the Suez Canal, with a 40% decline in January, affecting Egypt’s economy.
The Red Sea crisis is causing disruptions in the business world, affecting shipping patterns, bunker fuel demand, and container terminals. Major shipping companies, including Denmark’s Maersk, have instructed vessels to avoid the Red Sea. European ports are preparing for potential congestion, and there are concerns about ships bypassing Mediterranean routes.
The situation is evolving, with potential implications for global trade and supply chains.
