Breaking news

--- On March 11, local time, Yemeni Houthi spokesman Yahya Sarea released a video speech on the Masirah TV station controlled by the organization, announcing the immediate resumption of military strikes against Israeli ships passing through the Red Sea, Arabian Sea, Bab el-Mandeb Strait and Gulf of Aden.

According to Qatar's Al Jazeera, Yemeni Houthi announced that since Israel failed to abide by the agreement as scheduled and resume the opening of the transit point for delivering aid to Gaza, Yemen will continue to ban and crack down on Israeli ships in the Red Sea, Arabian Sea, Bab el-Mandeb Strait and Gulf of Aden. The ban will continue until Israel opens entry and exit to Gaza.

The chain reaction of shipping safety and international trade

The Red Sea, Arabian Sea, Bab el-Mandeb Strait and Gulf of Aden, which the Houthi announced to ban Israeli ships from passing through, are important waterways connecting Europe, Asia and Africa, especially the Suez Canal route, which accounts for about 12% of global trade transportation. The armed attack by the Houthis may cause shipping companies to detour around the Cape of Good Hope in Africa, increase transportation costs and time, increase the cost of shipping insurance, and further squeeze the profit space of international trade.

The resilience of the global supply chain is tested

The long-term instability of the Suez Canal may force companies to adjust their supply chain layout, such as increasing inventory or turning to regionalized production. The time spent may aggravate inflationary pressure, especially for energy-dependent countries in Europe and manufacturing countries in Asia.

Summary and Outlook

The latest statement of the Houthis is not only a continuation of regional conflicts, but also affects global political economy and cyber security as well as energy markets and global supply chains. The international community must seek a balance between ensuring shipping safety, alleviating the Gaza crisis and preventing the spillover of conflicts to avoid a more severe situation.

The military actions of the Houthis will directly push up freight rates on Asia-Europe, Mediterranean and energy transport routes through the "blockade effect" of the Red Sea route. It is recommended that shippers pay close attention to our shipping price trends or consult our customer service staff. Our company will provide suitable transportation solutions based on the needs of the shippers. Please arrange your shipping plan in advance, and be alert to short-term risks brought about by geopolitical and policy changes.

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