On a scale rivalling the aftermath of COVID-19, the ongoing conflict in the Red Sea has wrecked havoc on global trade and shipping. Consequently, shipping industries have had no choice but to divert vessels away from the region in order to mitigate risks.

i. Where is the Red Sea and Why is it Important? 

The Red Sea is a narrow sea inlet bookended between the Suez Canal and the Strait of Mandeb. Offering the shortest shipping route between Europe and Asia, the Red Sea witnesses around 12% of global trade passing through its waters.

ii) Who is Threatening Freedom of Navigation, and Why?

Since November 19th 2023, ships travelling through the Red Sea have suffered incessant attacks by the Houthi militants. This militant group emerged in Yemen during the 1990s, and is made up of Iranian rebels. Having wreaked havoc on Yemen for a decade, they are more recently escalating maritime attacks against Israel, as a direct retaliation to their invasion of the Gaza Strip.

Despite the majority of these commercial and cargo ships having no connection with Israel, the Houthi militants have bombarded cargo ships with drones and missiles, even managing to hijack the Galaxy Leader tanker in mid-November of 2023.

iii) The Global and Shipping Industry Response

As of the writing of this article, the US has announced a maritime coalition to defend against shipping attacks, as well as launching Operation Prosperity Guardian with the UK on December 18th 2023, to safeguard trade flows in the Red Sea region. Similarly the EU has also established its own initiative, named Operation Aspis on February 19th 2024. Despite these efforts, a plethora of challenges remain.

In direct response to the ongoing turmoil, freight rates have sky-rocketed, with late shipments becoming a new norm for the industry. Over 33 vessels have been assaulted in the Red Sea since the crisis began, and shows no sign of abating.

International cooperation will be instrumental to handling this crisis, however, challenges still persist and the situation continues to develop.