US and 12 other nations issue warning to Houthis over Red Sea attacks
The joint statement has been issued by the governments of the US, Australia, Bahrain, Belgium, Canada, Denmark, Germany, Italy, Japan, Netherlands, New Zealand, Singapore and the UK.
MAP: Areas marked in red where Houthi attacks have been reported in the Red Sea as of 2 January. Ambrey Analytics
“Ongoing Houthi attacks in the Red Sea are illegal, unacceptable, and profoundly destabilizing,” the statement, issued by the White House reads.
“Let our message now be clear: we call for the immediate end of these illegal attacks and release of unlawfully detained vessels and crews,” the statement says.
The Red Sea is a major conduit for global trade, with around 12% of the world's trade passing through this strategic waterway. This represents 30% of container traffic on ships carrying over $1 trillion/year worth of goods, according to BIMCO.
Yemen's Houthi rebel group has been attacking commercial ships in the southern Red Sea and the Bab al-Mandeb Strait between Yemen and Africa since November 2023. There have been attacks on ships owned by major shipping companies, including A.P. Moller-Maersk, Mediterranean Shipping Company (MSC) and CMA CGM.
As a result, major container shipping companies including Mediterranean Shipping Company (MSC), Maersk, CMA CGM, Hapag-Lloyd, Wan Hai Lines, Ocean Network Express (ONE), HMM, Evergreen and Yang Ming have announced that they will reroute vessels via Cape of Good Hope to avoid Houthi attacks in the Red Sea and Suez Canal transits.
The Cape of Good Hope route, however, adds approximately 14-24 days to travel time between Asia and Europe, increasing bunker and operating costs for vessels.
Additionally, the unrest has driven up war-risk insurance premiums, which can be quite costly for shipping companies.
In response, shipping companies have increased freight rates to pass on the contingency costs to consumers.
“International shipping companies continue to reroute their vessels around the Cape of Good Hope, adding significant cost and weeks of delay to the delivery of goods, and ultimately jeopardizing the movement of critical food, fuel, and humanitarian assistance throughout the world,” according to the joint statement.
“The Houthis will bear the responsibility of the consequences should they continue to threaten lives, the global economy, and free flow of commerce in the region’s critical waterways. We remain committed to the international rules-based order and are determined to hold malign actors accountable for unlawful seizures and attacks," the statement concludes.
The US has also formed a multinational task force, Operation Prosperity Guardian, to counter the Houthi threat and alleviate the crisis.
By Konica Bhatt
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