Rising Concerns: Houthi Attacks in Red Sea Threaten Global Trade and Security
Originally Published 2 years ago — by Fox Business
The exodus of shipping companies from the Red Sea due to attacks by Yemen's Houthi militants is causing disruptions in global trade, with major shippers rerouting their vessels to avoid the area. This has led to significant price increases in some ports in Germany and a surge in freight rates. Greece has also advised its shippers to avoid the Red Sea, further impacting global trade routes. The situation is expected to result in higher costs for energy supplies, palm oil, and grains, which will eventually be passed on to consumers. The duration of the disruption and the involvement of naval forces in securing the Red Sea remain uncertain.