Yemen's Houthi rebels have once again targeted merchant shipping in the southern Red Sea, firing two anti-ship ballistic missiles on Tuesday. Luckily, no damage has been reported so far. However, this incident is just one among a series of attacks that have plagued the region since mid-November, amounting to approximately two dozen assaults. In the face of heightened risks, shipping giant MESC has taken the precautionary measure to suspend all shipping activities through the Red Sea after one of its vessels was recently attacked by Iranian-backed militants.
The strategic importance of the Red Sea cannot be underestimated, serving as one of the world's most critical maritime trade routes. With the ongoing attacks endangering commercial traffic, concerns are mounting about potential disruptions to the global economy. MESC had previously resumed transit through the Red Sea following the launch of Operation Prosperity Guardian, a multinational mission led by the U.S. Navy aimed at protecting commercial shipping. Unfortunately, the respite was short-lived as Houthi militants targeted one of their ships shortly thereafter.
Over the weekend, the Murskhung Zoo, a sizable container ship en route from Singapore to the Egyptian port of Suez, fell victim to an attack as it passed through the Bab al-Mandab Strait—a crucial entry point to the Red Sea. The vessel was struck by an unknown object and subsequently came under fire from four Houthi boats. Prompt intervention by a U.S. naval helicopter successfully sank three of the attackers' boats, resulting in the loss of life for those on board. The fourth boat managed to escape, according to the U.S. military.
The extended suspension of this shipping route by Mursk reflects the mounting concerns of the global shipping community. Numerous other companies, including Hapag-Lloyd, Evergreen Line, and MSC Mediterranean Shipping Company, have also decided to halt their operations in the area. Considering that the Red Sea accounts for approximately 10 to 15 percent of world trade, the current disruption is already causing freight rates to significantly increase. Moreover, if the region continues to be deemed unsafe for commercial ships, there is a growing risk that these circumstances will contribute to global inflation.
As tensions persist and attacks persistently target merchant vessels, it remains to be seen how the situation will unfold in this crucial trade route. The international community is closely monitoring developments and assessing potential measures to safeguard maritime commerce in the area. In the meantime, the ceaseless attacks serve as a reminder of the profound impact that regional conflicts can have on the global economy.
