The World Bank reports that the Red Sea crisis has become a major point of conflict in the Middle East, significantly disrupting global trade, maritime transport, port operations in the MENA region, and the Red Sea’s ecosystem, reports Safety4sea.
Persistent Conflict
The shipping crisis in the Red Sea region has worsened, particularly around Yemen. The region has been a conflict hotspot since the Middle East crisis began in October 2023. The Houthi conflict, initially confined to Yemen, has spread to vital maritime areas, encompassing the Red Sea, the Gulf of Aden, the Arabian Sea, and the Northwestern Indian Ocean. This expansion has led to over 300 conflict-related incidents between October 2023 and December 2024.
Trade Disruption
Attacks on commercial ships in the Red Sea, a crucial route for about a third of global container traffic, have severely impacted maritime operations. The security risks have forced ships on Asia-Europe and Asia-North Atlantic routes to detour around the Cape of Good Hope.
This rerouting has significantly increased travel distances and times. By October 2024, cargo ship distances were up 48%, and tanker distances were up 38% compared to pre-conflict levels.
The crisis has also caused major disruptions to global supply chains. The World Bank’s Global Supply Chain Stress Index more than doubled from December 2023 to December 2024, reaching levels similar to the peak of container congestion during the COVID-19 pandemic. Delivery times, particularly in Europe, have also increased significantly.
Environment Damage
The Houthi attacks on ships in the Red Sea have had severe environmental consequences, including:
- Oil Spills and Hazardous Cargo Release: Attacks have resulted in oil spills and the potential release of hazardous cargo, such as fertilizer. Dozens of vessels carrying fertilizer, heavy fuel oil, and marine diesel have been attacked and sunk since March 2024.
- Damage to Marine Ecosystems: Leaked fuel and fertilizer have damaged marine life and disrupted fishing activities. Desalination plants, crucial for drinking water supplies, are also under threat.
- Disruption of Internet Connectivity: Attacks have also damaged underwater communication cables, affecting global internet access.
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Source: Safety4sea