The Rise of Houthi Movement in Yemen: Analyzing the Reasons Behind the Insurgency
The Red Sea crisis is a conflict involving the Houthi movement in Yemen, which has escalated in recent months.
The Houthis, backed by Iran, have been targeting vessels bound for various destinations, including Israel, in support of the Palestinian people amidst the war in Gaza.
As a result, the United States and United Kingdom have launched strikes against multiple Houthi targets in Yemen, warning the group of consequences for their repeated attacks.
Importance of Red Sea from global Trade point of view
These attacks have led to some of the world’s largest shipping and oil companies suspending transit through the Red Sea, a critical maritime trade route.
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This disruption has the potential to have a significant impact on the global economy. There are concerns that the conflict could escalate into a wider regional conflict, particularly given the Houthis’ ties to Iran.
The Red Sea is a crucial trade route, with nearly 15% of global seaborne trade transiting through it. It serves as a vital link between the Indian Ocean and the Mediterranean Sea, connecting Europe and Asia.
While the current disruption may not cause as much upheaval to supply chains as seen during the coronavirus pandemic, it still poses a significant threat to international commerce.
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Shipping line has started diversion of vessel to continuation movement of goods.
The diversion means avoiding the quickest path between Europe and Asia through Egypt’s Suez Canal, and taking the longer Cape of Good Hope route around southern Africa.
Ocean freight has gone shoot up to 600%. Before this crisis, Nhava Sheva to Hamburg Ocean freight was $ 600 for 20-foot container and now freight is $ 3500 for 20 Foot, plus other charges.
The Red Sea crisis involving the Houthi movement has the potential to have a far-reaching impact on global trade and the economy.
The conflict and its disruption of the Red Sea’s strategic waterway are a cause for concern, and efforts to find a resolution and restore stability to the region are of paramount importance.
