U.S. Site “Fox”: Houthi Attacks in the Red Sea Take the World Back to the Pre-Suez Canal Era

NYN | Reports and analyses

The American website “Fox” reported that the rising geopolitical tensions and armed conflicts have cast a shadow over global shipping lanes, particularly in the Red Sea, one of the world’s most prominent shipping routes. The report noted that the increasing attacks carried out by the Houthis in support of Gaza against vessels linked to “Israel” have led to two-thirds of the ships that used to pass through the Suez Canal being redirected to longer routes, adding thousands of miles and additional weeks of travel time to their journeys.

The website added that the impact of these Yemeni attacks is not limited to increasing the cost and time of shipping but also threatens one of the foundations of current globalization: the certainty of maritime routes. The current situation could lead to significant disruptions in global supply chains, adding new pressures to an already struggling global economy. The report stressed that these events and developments in the Red Sea are pushing global maritime shipping back to the era before the opening of the Suez Canal in 1869.

In its report published on Monday, titled “Armed Conflict Puts Pressure on the Bones of the Global Economy,” the site stated: “In a time of escalating armed conflicts and increasing tensions between major powers, the basic principles that govern the global economy are being questioned. Global trade, which globalization advocates had hoped would unite countries, is increasingly being used as a weapon by conflicting nations against one another. Sanctions are dividing the global economy, especially energy markets, into two halves. Even the internet, once considered an open space without national sovereignty, is increasingly divided along national borders.”

The report continued: “When we talk about globalization, we often focus on the movement of people, goods, money, and information. But these movements depend on a physical infrastructure that facilitates these exchanges: container ships that transport goods from factories in Asia to stores in America; giant airplanes that enable people to have breakfast in Abu Dhabi and dinner in Paris; and undersea cables that make video calls, Amazon orders, and online gaming possible.”

The report pointed out that “the increasing armed conflicts and geopolitical tensions, from the Red Sea to the Arctic, are threatening this infrastructure, putting unprecedented pressure on global supply chains for goods, people, and data. So far, this physical network on which the global economy depends has held up, but companies and officials tasked with maintaining this network are preparing for what’s to come, amid growing concerns that the global system may be more fragile than previously thought.”

The Red Sea Spiral

“Fox” reported: “On July 9, the container ship Benjamin Franklin, flying the Maltese flag and operated by the French shipping company CMA CGM, encountered bad weather off the southern coast of Africa, leading to the loss of 44 containers at sea. This incident occurred just days after another ship ran aground off the coast of Cape Town.” The site explained that “these incidents are reminders of the danger that makes ships rarely risk sailing around the southern tip of Africa during the southern hemisphere’s winter.”

The report added that “since last November, the Houthis in Yemen have carried out attacks on ships in the Red Sea using drones, missiles, and even seizing some ships. Although the Houthis target vessels connected to Israel in solidarity with their allies in Hamas and the people of Gaza, some attacks have harmed other ships with only loose ties to Israel, leading to the sinking of two ships and the death of three sailors. Despite the significant efforts by the U.S.-led military coalition to counter these attacks by intercepting projectiles and missiles and attacking launch sites in Yemen, the threats remain persistent and ongoing.”

The site highlighted that the risk of Houthi attacks has led about two-thirds of the ships that usually pass through the Suez Canal to instead navigate around the Cape of Good Hope in South Africa, adding thousands of miles and weeks to their journeys. This has significantly reduced shipping traffic, effectively returning the situation to what it was before the Suez Canal was opened in 1869.

Significant Impact on the Global Economy

The report confirmed that “the delays and uncertainties resulting from these circumstances have significant impacts, including port congestion, a shortage of shipping containers, and rising shipping costs, sometimes exceeding twice the normal costs. This affects one of the foundations of modern globalization: the certainty in maritime routes.”

The website quoted Sal Mercogliano, a shipping historian at Campbell University: “We have relied on the idea that you can move goods anywhere around the world within a specified time frame. Now you can’t be certain of that anymore.”

The report added that “the Red Sea, pinched from the north by the Suez Canal and from the south by the Bab al-Mandab Strait between Yemen and East Africa, is one of the world’s main shipping routes and is currently facing unprecedented challenges. Under normal circumstances, about 12% of global trade and 10% of maritime oil trade pass through the Red Sea.”

The site noted that “the route has been closed before – notably in 2021 when a container ship got stuck in the Suez Canal, blocking traffic for a week. But this time, the situation is different. Even if the war in Gaza ends tomorrow, there is no guarantee that the Houthis, who have a variety of demands and grievances with regional powers and the international community, will simply relinquish the influence they have suddenly seized. Nor is there any assurance that the international community can compel them to do so.”

The report quoted Nils Haupt, Director of Corporate Communications at the German shipping company “Hapag-Lloyd,” whose ship was attacked by the Houthis in December, as saying: “It’s impossible to determine the conditions that would make the Red Sea safe for shipping again.” He emphasized that shipping companies are not yet prepared to resume using this critical route.

Haupt stated: “Who will be the first shipping line to tell their sailors, ‘Okay, starting tomorrow, we’ll be passing through the Red Sea again?’ It won’t be us. If you ask me how long this will last, I’ll give you the same answer that any military officer or insurance company might give you: no one knows.”

The website confirmed that the ramifications of the Red Sea crisis extend beyond shipping companies. For example, Saudi Arabia, which aims to enhance its logistical position as part of Vision 2030, is facing new challenges. Additionally, Middle Eastern gas producers, who are seeking to increase their market share in Europe in the wake of the war in Ukraine, depend on the stability of the Red Sea.

The website quoted Noam Ridan, a shipping and energy expert in the Middle East at the Washington Institute for Near East Policy, as saying: “As part of a major economic development initiative for Vision 2030, the Saudi government recently launched a significant project to improve the competitiveness of its ports in the hope of becoming a logistics hub for the global shipping industry. Middle Eastern gas producers are competing to increase their market share in Europe, as the war in Ukraine has prompted many European countries to reduce their reliance on Russian gas. All of this depends on stability in the Red Sea.”

Ridan added: “I don’t see us returning to normal. This is a new situation. I don’t see things going back to the way they were before October.”

The Red Sea Danger Isn’t the Only One

The website pointed out that “the Red Sea isn’t the only choke point for global shipping, as there are also increasing concerns about potential Iranian disruption of the Strait of Hormuz, between the Persian Gulf and the Gulf of Oman, which is even more critical to international energy trade and has seen naval combat in the past.”

The site added that “the Red Sea crisis follows the threat to shipping in the Black Sea following Russia’s invasion of Ukraine and Moscow’s attempt to enforce a blockade on Ukraine’s ports in 2022. Other threats of conflict over key global shipping routes, including the Taiwan Strait and the South China Sea, remain present and cannot be dismissed.”

The website quoted Mercogliano as saying: “The oceans have already been under significant threat, and what we’re seeing now are multiple issues causing delays and diversions around the planet. The fear is that there may be more on the horizon and what might come next.”

Unfriendly Skies

The American website “Fox” reported in its article that “the escalating geopolitical crisis began with Russia’s invasion of Ukraine, where Europe, Canada, and the United States closed their airspace to Russian airlines, while Russia responded by closing its airspace to planes from these countries. These restrictions have extended flight times between Europe and Asia by up to four hours, leading to a significant increase in costs.”

The site added that “the air restrictions have imposed obstacles on some routes from North America to Asia, putting American airlines at a disadvantage compared to other airlines that still benefit from using Russian airspace.”

Threat to Key Infrastructure

The site pointed out that “submarine cables, the lifeline of global communications, have not been immune to risks. On March 2, Houthi missile attacks caused the sinking of the cargo ship Rubimar. U.S. officials believe that the ship’s anchor, when it sank, dragged along the seabed, cutting three undersea communication cables. This severing caused major disruptions in communications between Asia, Europe, and the Middle East.”

The report continued: “The damage to the cables wasn’t a deliberate act of sabotage by the Houthis but rather an unintended consequence of their attack. However, the incident serves as a reminder of the importance and vulnerability of underwater infrastructure. This issue has raised growing concerns among defense researchers, particularly as the sinking of Rubimar is not the only incident to have caused such concern recently.”

The report cited another example of the threat, referring to the cutting of a fiber optic cable connecting Norway to the Svalbard Archipelago.