(05-06-2025 03:15 PM)TheOriginalBigApp Wrote: these guys are not much more than an nuisance. India/Pakistan is a much larger concern than Houthis will ever be.
India and Pakistan have nuclear weapons which ups the ante, but the Houthis are a significant threat - well beyond a nuisance.
Per AI:
Direct Trade Disruption: The Russell Group estimated that goods worth approximately $1 trillion were disrupted due to Houthi attacks from October 2023 to May 2024. This figure reflects the value of cargo affected by rerouting or delays, not necessarily direct losses but the scale of trade impacted.
Increased Shipping Costs:
The cost of shipping a 40-foot container from Asia to Northern Europe surged significantly. By January 2024, rates had risen by 173%, from around $1,500 to over $4,000, and peaked at $5,272.50 per forty-foot equivalent unit (FEU). By March 2025, rates were still double pre-crisis levels, though they had normalized somewhat to around $3,017 per FEU.
Spot container rates from Shanghai to Europe increased by 256% from December 2023 to February 2024.
Rerouting ships around the Cape of Good Hope added an estimated $1 million in fuel costs per round trip, with voyages extended by 10-14 days and 11,000 nautical miles.
Insurance premiums for ships transiting the Red Sea rose nearly tenfold, with some reports indicating a 250% increase for certain vessels, particularly those linked to Israel.
Global Trade Volume Impact:
Container shipping through the Red Sea dropped by 90% from December 2023 to February 2024, with Suez Canal traffic falling from 2,068 ships in November 2023 to 877 in October 2024, a 28% decline in some periods.
Approximately 12% of global trade, including 30% of global container traffic, 12% of seaborne oil, and 8% of liquefied natural gas (LNG), typically passes through the Red Sea, making the disruptions significant.
A 1.3% decrease in global trade was attributed to Houthi attacks between November and December 2023.
Economic Losses:
The Economist reported $200 billion in losses from Houthi attacks in 2024, though this figure likely includes indirect costs like delays and rerouting rather than direct financial losses.
The Suez Canal, a critical revenue source for Egypt, saw a 25% reduction in commercial traffic, contributing to a loss of nearly $9.4 billion annually for the Egyptian economy.
Specific companies faced surcharges and delays; for example, Party City in New Jersey reported extra charges of $300-$500 per container and delays of up to a week.
