Red Sea Shipping Lags as Houthi-U.S. Ceasefire Fails to Boost Traffic

Recent insights from the new York Times reveal that ship traffic in the Red Sea has plummeted by nearly 60% since the start of 2023. This decline persists despite a cease-fire agreement facilitated by the U.S. between Yemeni Houthi rebels and other parties, who have previously targeted vessels navigating this crucial shipping route linking the Suez Canal to global trade.

The cease-fire, which took effect on may 6, marked an end to a important U.S. military campaign involving over 1,100 airstrikes against Houthi positions in Yemen. This operation became somewhat of a political embarrassment for former President Trump after internal discussions about it were leaked to the public. Initially intended as a prolonged offensive, it was abruptly halted after just around 50 days.

Interestingly enough, even though there haven’t been any attacks on commercial ships as December last year, major shipping firms are still steering clear of both the Red Sea and Suez Canal.Instead, they’re opting for much longer routes around Africa’s southern tip when transporting goods between Asia and Europe.

The Times also highlights concerns among shipping executives regarding potential disruptions to their operations if they were to return to these waters only to face renewed hostilities.