On the 23 Dec., Houthis of Yemen carried out their 14th and 15th attacks on US’s vessels in the Red Sea.
The US claimed that a merchant ship traveling off the western coast of India was hit by an Iranian drone attack.
The Houthis, who control the Gulf of Aden near the Red Sea, have been conducting military operations against Israeli-affiliated vessels in the Red Sea since October.
Since then, major shipping companies such as MAERSK have shifted their trade routes through Cape of Good Hope in Africa, which is about 9,000 kilometers longer than the Suez Canal route through the Red Sea.
The Red Sea route accounts for 30 per cent of seaborne containerized cargo and 12 per cent of seaborne trade, and is a major route for oil and natural gas exports.
Since the paralysis of the Red Sea, cargo transportation periods have become longer, causing sea freight rates to soar. Land and air freight rates have also risen sharply. 40% of container ships have been delayed. Inventory management costs are also increasing due to delays.
The aftermath is inevitable for industries such as food, where cost competitiveness has deteriorated and consumer prices have risen. International oil prices have risen about 10 per cent in one month.
