Houthi attacks prompt half of container ships to avoid Suez Canal, sparking fears of price hikes in Europe

About 100 attacks on cargo ships passing through the Bab al-Mandab Strait, located near Yemen and linking the Red Sea with the Indian Ocean, have been executed by Yemeni Houthi fighters in the past 30 days. They vow to persist unless Israel ceases its attacks on Palestinians in Gaza, irrespective of the coalition formed by the US and allies aimed at providing naval convoy protection.

As previously reported on money.pl, major shipowners have elected to avoid the Bab al-Mandab Strait, also known as the "Gate of Tears", resulting in an important repercussion considering 12 percent of global trade is processed through the Suez Canal.

Data compiled by Bloomberg from Thursday (December 28) revealed that half of the ships regularly sailing through the Red Sea rerouted around Africa, a journey which is 25 percent longer than the path through the Suez Canal.

As reported by Bloomberg, Flexport Inc. indicates that 299 ships with a cumulative capacity to transport 4.3 million containers have either rerouted or intend to do so. This figure is approximately double that of a week prior and constitutes about 18 percent of global traffic, Bloomberg states.

Experts consulted by the agency note that "such detours are costlier and could lead to higher consumer prices for everything from footwear to food and fuel."

Meanwhile, Clarksons Research reported that the number of arrivals in the Gulf of Aden at the "Gate of Tears" decreased by 40 percent between December 22 and December 26, compared to the month's first half average.

Bloomberg indicates that the influx of container ships to the Gulf of Aden declined by 87 percent, gas carriers around 30 percent, and car carriers roughly 25 percent. A similar trend is observed in transit through the Suez Canal, which, per Clarksons, plunged about 45 percent for southbound ships between December 22 and December 26, Bloomberg adds.