Attacks on commercial shipping by Yemen’s Houthi rebels in the Red Sea caused a 90% decline in container shipping through the area between December and February, according to US intelligence officials.
The Pentagon’s Defense Intelligence Agency found that the attacks impacted at least 65 countries and forced at least 29 major energy and shipping companies to change their routes. Among the affected firms include, British Petroleum, Evergreen, CMA CGM, Maersk, Qatar Energy and Shell.
Many vessels chose to go around South Africa’s Cape of Good Hope, adding around 11,000 nautical miles and at least 10 days of travel onto each journey and increasing fuel costs by around $1 million for each voyage.
Shipping insurance premiums have also shot up for Red Sea transits, the report said. As of mid-February, premiums have risen to 0.7-1.0% of a ship’s total value, compared to less than 0.1% before December 2023.
