Amidst the ongoing Israel/Hamas conflict, Houthi rebels in Yemen have targeted and/or attacked multiple vessels in the Red Sea, creating a major risk for any ships transiting via the Suez Canal. Multiple shipping lines (Maersk, OOCL, etc.) have either paused this route completely or re-directed their ships via the Cape of Good Hope, a voyage that adds 1,900 nautical miles and takes twice as long.
- The U.S. Department of Defense is deploying naval assets to the Red Sea to assist. The U.S. Secretary of Defense said America and its allies (U.K., Canada, France, etc.) agreed to create a naval task force to counter the ongoing attacks.
- Asia-North Europe freight rates may climb as westbound voyages are paused and others are diverted around Africa.
Source: Ambrey Analytics, accessed via Bloomberg. Note: Shows Nov. 19–Dec. 18 and includes attempted attacks.