Red Sea Crisis: Trade, Military Response, Impact
Verdict: Correct
### Topic
Red Sea Crisis: Trade, Military Response, Impact
### Summary
The Red Sea crisis, initiated by Houthi attacks on Israeli-affiliated shipping vessels from November 2023, has severely disrupted global maritime trade through a critical chokepoint. These actions, claimed to be in solidarity with Palestinians, have prompted international military responses and significantly escalated shipping costs and transit times.
### Body
The Red Sea crisis, an ongoing armed conflict and maritime crisis instigated by the Houthis, an armed group in Yemen, began on [October 19, 2023](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Houthi forces commenced attacking shipping vessels affiliated with Israel passing through the Red Sea on [November 19, 2023](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), claiming their actions are in solidarity with Palestinians and will persist until Israel ceases the Gaza war. By February 2024, [40 vessels had been attacked](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html); this number escalated to over [190 attacks by October 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Between October 2023 and December 2024, Houthi forces conducted [201 attacks on commercial vessels](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), resulting in [12 fatalities](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Over [160 incidents have been logged by Operation Prosperity Guardian and EUNAVFOR ASPIDES](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) since November 2023. In response to the attacks, global shipping companies rerouted vessels around the [Cape of Good Hope](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), off South Africa, which adds approximately [3,500 nautical miles and 10-14 extra days](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) to each voyage from Asia to Europe. The United States launched [Operation Prosperity Guardian on December 18, 2023](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), a coalition of more than 20 nations, to protect Red Sea shipping. The UN Security Council adopted [Resolution 2722 in January 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), condemning Houthi attacks and affirming freedom of navigation. From [January 12, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), the US and UK led coalition air and missile strikes against Houthi targets in Yemen, codenamed Operation Poseidon Archer. The European Union launched [Operation Aspides on February 19, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), as a naval mission to protect international shipping. Between November and December 2023, a [1.3% decrease in global trade](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) resulted from Houthi attacks. In the first two months of 2024, the volume of trade through the Suez Canal dropped by [50% year-over-year](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), while trade around the Cape of Good Hope surged by an estimated [74%](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). By March 2024, traffic via the Bab El Mandeb and Suez Canal dipped by [50%](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), while it doubled along the circumnavigated route. Suez Canal revenues for Egypt were down [40% by January 12, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), compared to 2023 levels, with Egypt reporting an estimated [$7 billion loss in Suez Canal revenues for 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), representing approximately [5% of its GDP](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Cargo insurance rates for Red Sea and Bab al-Mandab voyages, typically [0.6% of cargo value](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), increased to [2% by January 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). War risk premiums surged from a nominal [0.05% of hull value to 0.7% by mid-December 2023](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), and further to [1% of a vessel's hull value by February 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). By 2025, war-risk premiums more than doubled, sometimes reaching [1% or more of a ship's value](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), up from 0.3-0.4%. The Red Sea region has been designated as a [high-risk area by the Joint War Committee of Lloyd's](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Major affected commodities include container cargo, oil, LNG, and grains. Oil transits via the Bab al-Mandab Strait fell to [2.5 million b/d in 2024 from 6.9 million b/d in 2023](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), and via the Suez Canal dropped to [3.9 million b/d from 7.9 million b/d](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Fatalities and vessel losses have been recorded: The M/V Rubymar, a Belize-flagged, UK-owned bulk carrier, was struck by an anti-ship ballistic missile on [February 18, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), and sank on [March 2, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). On [March 6, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), the Houthis killed [three crew members aboard the MV True Confidence](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) cargo ship, marking the first fatal Red Sea ship attack. On [June 12, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), the MV Tutor coal carrier was struck by a Houthi missile, causing it to sink and killing a crewman. In [July 2025](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), two Liberian-flagged cargo ships were sunk by Houthi attacks, killing at least [four sailors and leaving 19 unaccounted for](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The Red Sea crisis has caused the World Bank's Global Supply Chain Stress Index to rise to [2.3 million TEUs in December 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), more than double December 2023 levels.
Coalition forces under Operation Prosperity Guardian have achieved a high rate of success in intercepting Houthi-launched projectiles, with U.S. and allied naval assets neutralizing nearly [400 drones and missiles by April 2025](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Reports indicate near-flawless tactical performance in defensive interceptions, including over [75% of Houthi drone attacks on shipping thwarted](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). U.S. Arleigh Burke-class destroyers, equipped with Aegis combat systems, have neutralized threats at ranges exceeding [100 nautical miles](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) using Standard Missile-2 (SM-2), Standard Missile-6 (SM-6), and Evolved Sea Sparrow Missile (ESSM) interceptors. The U.S. Navy has achieved nearly flawless tactical victories in self-defense, defense of merchants, and defense of allied territory against the Houthis. Notable tactical successes include the [first-ever use of a Standard Missile 3 in combat](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) for ballistic missile defense and the [first-ever naval air-to-air kill of a hostile drone](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The U.S. Navy also unveiled a new anti-drone "Murder Hornet" weapons configuration for the F/A-18 Super Hornet. Operation Prosperity Guardian has managed to deter some Houthi attacks and limit their impacts on international shipping, leading some firms like [Maersk and CMA CGM to cautiously resume Red Sea shipping in early 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The Italian Navy Andrea Doria-class destroyer Caio Duilio neutralized a Houthi UAV about [6km from the warship on March 2, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), using its OTO Melara 76/62 Super Rapid Gun Mount. The Indian Navy has played an important role in ensuring the safety of sea lines of communication in the Gulf of Aden. The surge in Cape of Good Hope traffic presents economic opportunities for South Africa to revitalize its maritime economy by providing bunkering and ship supplies.
The Red Sea crisis has led to significant cargo shipping delays and price increases, with the Drewry's World Container Index jumping from [$1,521/40 ft on December 14, 2023, to $3,777/40 ft by January 18, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), and Shanghai to Genoa shipments exceeding [$6,000/40 ft](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Diversions around the Cape of Good Hope increase fuel and labor costs, with estimates suggesting an additional [$30,000-$35,000 per voyage](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) for larger container vessels, and JPMorgan's research indicating an additional [$200-400 per TEU](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Longer transit times strain vessel schedules, reducing service frequency and impacting cash flow and inventory management due to goods spending nearly two additional weeks in transit. The crisis has caused a [6.7% decline year-over-year in port calls to 70 ports in sub-Saharan Africa](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) in January and February 2024, and a [5.3% decline for the European Union and the Middle East and Central Asia](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Nearly all of the top 20 ports across Red Sea and Gulf countries recorded notable drops in both imports and exports, with an average trade volume decrease of [8% between November 2023 and October 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Jordan and Oman saw export declines of [38% and 28% respectively](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), while Jordan and Qatar experienced import declines of [50% and 27%](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The crisis has contributed to higher inflation rates by [more than 1% globally and more than 2% in the MENA region](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Some analysts question the sustainability and efficiency of using expensive [SM-2 missiles (roughly $2.4 million each)](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) to intercept relatively cheap, Iran-made Houthi drones. The international response to the Houthi threat is not a complete success story, with the Biden administration struggling to garner diplomatic support and military contributions from allies. European allies expressed skepticism and disagreements with Washington's strategy, leading the EU to launch its own maritime security operation, [Aspides, on February 19, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), which some US officials viewed as a message of disunity. The Danish frigate Iver Huitfeldt experienced critical failures in all three layers of its air defense systems during a battle, with its primary system non-operational for [30 minutes and its 76mm cannon malfunctioning](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Insurance companies remain reluctant to provide cover for Red Sea transit unless the threat level is near-zero, with some implementing exclusions for vessels with links to the US, UK, or Israel, or excluding the route entirely. The Houthis have developed significantly more sophisticated attack capabilities, including coordinated strikes combining missiles, drones, unmanned surface vessels, and even unmanned submersible vehicles, making strikes far more accurate. The crisis has resulted in distressed ships damaging critical undersea fiber optic cables, disrupting vital telecommunications infrastructure and global connectivity, forcing the rerouting of approximately [25% of internet traffic across these regions](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The Red Sea crisis has exacerbated food security challenges and could generate social unrest in affected countries.
### Supplement
The Red Sea, connected to the Suez Canal and the Bab-el-Mandeb Strait, is a crucial global maritime chokepoint, handling approximately [12% to 15% of global maritime trade](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) and [30% of global containerized trade](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Houthi forces claim their actions are in solidarity with Palestinians and will persist until Israel ceases the Gaza war. The Houthis possess advanced weaponry, including medium and long-range ballistic missiles, cruise missiles, sea-to-sea missiles, attack and suicide UAVs (drones), and a fleet of drones, many with Iranian assistance. Notable Houthi weapons include the [Burkan 2-H medium-range ballistic missile (600 miles range)](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), [Sumar cruise missiles (2,000 km range)](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), Quds-2 cruise missiles, [Samad 4 attack UAV (2000-2500 km range)](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), and the [Palestine-2 ballistic missile (2,150 km range)](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The effectiveness of platforms and weapon systems used by American sailors to destroy Houthi threats is attributed to defense decisions made decades ago, such as the [Aegis Combat System, which became a program of record 60 years prior](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The Red Sea's shallow and narrow nature, particularly the [16-nautical-mile-wide Bab-el-Mandeb strait](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), makes it a challenging environment for naval defense. The Houthis' ability to build and deploy weapons systems, including long-range drones, using imported parts and raw materials, indicates a growing domestic military-industrial complex with Iranian assistance, rather than solely relying on smuggled arms. While the Houthis possess some local manufacturing capacity for ballistic missiles, land-attack and anti-ship cruise missiles appear to be supplied entirely by Iran, as the group is not assessed to have the capability to produce small turbojet engines or active radar-homing seekers.
### Evidence
* https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html
Red Sea Crisis: Trade, Military Response, Impact
### Summary
The Red Sea crisis, initiated by Houthi attacks on Israeli-affiliated shipping vessels from November 2023, has severely disrupted global maritime trade through a critical chokepoint. These actions, claimed to be in solidarity with Palestinians, have prompted international military responses and significantly escalated shipping costs and transit times.
### Body
The Red Sea crisis, an ongoing armed conflict and maritime crisis instigated by the Houthis, an armed group in Yemen, began on [October 19, 2023](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Houthi forces commenced attacking shipping vessels affiliated with Israel passing through the Red Sea on [November 19, 2023](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), claiming their actions are in solidarity with Palestinians and will persist until Israel ceases the Gaza war. By February 2024, [40 vessels had been attacked](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html); this number escalated to over [190 attacks by October 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Between October 2023 and December 2024, Houthi forces conducted [201 attacks on commercial vessels](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), resulting in [12 fatalities](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Over [160 incidents have been logged by Operation Prosperity Guardian and EUNAVFOR ASPIDES](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) since November 2023. In response to the attacks, global shipping companies rerouted vessels around the [Cape of Good Hope](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), off South Africa, which adds approximately [3,500 nautical miles and 10-14 extra days](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) to each voyage from Asia to Europe. The United States launched [Operation Prosperity Guardian on December 18, 2023](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), a coalition of more than 20 nations, to protect Red Sea shipping. The UN Security Council adopted [Resolution 2722 in January 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), condemning Houthi attacks and affirming freedom of navigation. From [January 12, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), the US and UK led coalition air and missile strikes against Houthi targets in Yemen, codenamed Operation Poseidon Archer. The European Union launched [Operation Aspides on February 19, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), as a naval mission to protect international shipping. Between November and December 2023, a [1.3% decrease in global trade](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) resulted from Houthi attacks. In the first two months of 2024, the volume of trade through the Suez Canal dropped by [50% year-over-year](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), while trade around the Cape of Good Hope surged by an estimated [74%](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). By March 2024, traffic via the Bab El Mandeb and Suez Canal dipped by [50%](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), while it doubled along the circumnavigated route. Suez Canal revenues for Egypt were down [40% by January 12, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), compared to 2023 levels, with Egypt reporting an estimated [$7 billion loss in Suez Canal revenues for 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), representing approximately [5% of its GDP](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Cargo insurance rates for Red Sea and Bab al-Mandab voyages, typically [0.6% of cargo value](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), increased to [2% by January 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). War risk premiums surged from a nominal [0.05% of hull value to 0.7% by mid-December 2023](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), and further to [1% of a vessel's hull value by February 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). By 2025, war-risk premiums more than doubled, sometimes reaching [1% or more of a ship's value](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), up from 0.3-0.4%. The Red Sea region has been designated as a [high-risk area by the Joint War Committee of Lloyd's](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Major affected commodities include container cargo, oil, LNG, and grains. Oil transits via the Bab al-Mandab Strait fell to [2.5 million b/d in 2024 from 6.9 million b/d in 2023](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), and via the Suez Canal dropped to [3.9 million b/d from 7.9 million b/d](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Fatalities and vessel losses have been recorded: The M/V Rubymar, a Belize-flagged, UK-owned bulk carrier, was struck by an anti-ship ballistic missile on [February 18, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), and sank on [March 2, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). On [March 6, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), the Houthis killed [three crew members aboard the MV True Confidence](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) cargo ship, marking the first fatal Red Sea ship attack. On [June 12, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), the MV Tutor coal carrier was struck by a Houthi missile, causing it to sink and killing a crewman. In [July 2025](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), two Liberian-flagged cargo ships were sunk by Houthi attacks, killing at least [four sailors and leaving 19 unaccounted for](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The Red Sea crisis has caused the World Bank's Global Supply Chain Stress Index to rise to [2.3 million TEUs in December 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), more than double December 2023 levels.
Coalition forces under Operation Prosperity Guardian have achieved a high rate of success in intercepting Houthi-launched projectiles, with U.S. and allied naval assets neutralizing nearly [400 drones and missiles by April 2025](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Reports indicate near-flawless tactical performance in defensive interceptions, including over [75% of Houthi drone attacks on shipping thwarted](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). U.S. Arleigh Burke-class destroyers, equipped with Aegis combat systems, have neutralized threats at ranges exceeding [100 nautical miles](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) using Standard Missile-2 (SM-2), Standard Missile-6 (SM-6), and Evolved Sea Sparrow Missile (ESSM) interceptors. The U.S. Navy has achieved nearly flawless tactical victories in self-defense, defense of merchants, and defense of allied territory against the Houthis. Notable tactical successes include the [first-ever use of a Standard Missile 3 in combat](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) for ballistic missile defense and the [first-ever naval air-to-air kill of a hostile drone](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The U.S. Navy also unveiled a new anti-drone "Murder Hornet" weapons configuration for the F/A-18 Super Hornet. Operation Prosperity Guardian has managed to deter some Houthi attacks and limit their impacts on international shipping, leading some firms like [Maersk and CMA CGM to cautiously resume Red Sea shipping in early 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The Italian Navy Andrea Doria-class destroyer Caio Duilio neutralized a Houthi UAV about [6km from the warship on March 2, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), using its OTO Melara 76/62 Super Rapid Gun Mount. The Indian Navy has played an important role in ensuring the safety of sea lines of communication in the Gulf of Aden. The surge in Cape of Good Hope traffic presents economic opportunities for South Africa to revitalize its maritime economy by providing bunkering and ship supplies.
The Red Sea crisis has led to significant cargo shipping delays and price increases, with the Drewry's World Container Index jumping from [$1,521/40 ft on December 14, 2023, to $3,777/40 ft by January 18, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), and Shanghai to Genoa shipments exceeding [$6,000/40 ft](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Diversions around the Cape of Good Hope increase fuel and labor costs, with estimates suggesting an additional [$30,000-$35,000 per voyage](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) for larger container vessels, and JPMorgan's research indicating an additional [$200-400 per TEU](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Longer transit times strain vessel schedules, reducing service frequency and impacting cash flow and inventory management due to goods spending nearly two additional weeks in transit. The crisis has caused a [6.7% decline year-over-year in port calls to 70 ports in sub-Saharan Africa](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) in January and February 2024, and a [5.3% decline for the European Union and the Middle East and Central Asia](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Nearly all of the top 20 ports across Red Sea and Gulf countries recorded notable drops in both imports and exports, with an average trade volume decrease of [8% between November 2023 and October 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Jordan and Oman saw export declines of [38% and 28% respectively](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), while Jordan and Qatar experienced import declines of [50% and 27%](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The crisis has contributed to higher inflation rates by [more than 1% globally and more than 2% in the MENA region](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Some analysts question the sustainability and efficiency of using expensive [SM-2 missiles (roughly $2.4 million each)](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) to intercept relatively cheap, Iran-made Houthi drones. The international response to the Houthi threat is not a complete success story, with the Biden administration struggling to garner diplomatic support and military contributions from allies. European allies expressed skepticism and disagreements with Washington's strategy, leading the EU to launch its own maritime security operation, [Aspides, on February 19, 2024](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), which some US officials viewed as a message of disunity. The Danish frigate Iver Huitfeldt experienced critical failures in all three layers of its air defense systems during a battle, with its primary system non-operational for [30 minutes and its 76mm cannon malfunctioning](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Insurance companies remain reluctant to provide cover for Red Sea transit unless the threat level is near-zero, with some implementing exclusions for vessels with links to the US, UK, or Israel, or excluding the route entirely. The Houthis have developed significantly more sophisticated attack capabilities, including coordinated strikes combining missiles, drones, unmanned surface vessels, and even unmanned submersible vehicles, making strikes far more accurate. The crisis has resulted in distressed ships damaging critical undersea fiber optic cables, disrupting vital telecommunications infrastructure and global connectivity, forcing the rerouting of approximately [25% of internet traffic across these regions](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The Red Sea crisis has exacerbated food security challenges and could generate social unrest in affected countries.
### Supplement
The Red Sea, connected to the Suez Canal and the Bab-el-Mandeb Strait, is a crucial global maritime chokepoint, handling approximately [12% to 15% of global maritime trade](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html) and [30% of global containerized trade](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). Houthi forces claim their actions are in solidarity with Palestinians and will persist until Israel ceases the Gaza war. The Houthis possess advanced weaponry, including medium and long-range ballistic missiles, cruise missiles, sea-to-sea missiles, attack and suicide UAVs (drones), and a fleet of drones, many with Iranian assistance. Notable Houthi weapons include the [Burkan 2-H medium-range ballistic missile (600 miles range)](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), [Sumar cruise missiles (2,000 km range)](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), Quds-2 cruise missiles, [Samad 4 attack UAV (2000-2500 km range)](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), and the [Palestine-2 ballistic missile (2,150 km range)](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The effectiveness of platforms and weapon systems used by American sailors to destroy Houthi threats is attributed to defense decisions made decades ago, such as the [Aegis Combat System, which became a program of record 60 years prior](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html). The Red Sea's shallow and narrow nature, particularly the [16-nautical-mile-wide Bab-el-Mandeb strait](https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html), makes it a challenging environment for naval defense. The Houthis' ability to build and deploy weapons systems, including long-range drones, using imported parts and raw materials, indicates a growing domestic military-industrial complex with Iranian assistance, rather than solely relying on smuggled arms. While the Houthis possess some local manufacturing capacity for ballistic missiles, land-attack and anti-ship cruise missiles appear to be supplied entirely by Iran, as the group is not assessed to have the capability to produce small turbojet engines or active radar-homing seekers.
### Evidence
* https://www.maritime-executive.com/article/red-sea-attacks-escalate-global-trade-impact-20260715.html