- Multiple attacks have sunk two bulk carriers in the Red Sea within a week, causing casualties and kidnappings.
- Smaller container ships are increasingly transiting the Suez Canal, while larger vessels continue to avoid the region due to security concerns.
- The surge in attacks has disrupted global shipping, with major carriers suspending services and rerouting vessels.
The Red Sea has seen a sharp increase in maritime security incidents, primarily caused by Houthi rebels, reads an Alphaliner release.
In early July 2025, two bulk carriers were attacked and sunk. These attacks are part of a campaign by the Houthis, who oppose vessels associated with Israel. Their actions have severely disrupted shipping lanes, raising concerns about maritime safety in the region.
Shifts in Shipping Traffic Patterns
In response to the threats, shipping companies are adjusting their routes. Smaller container ships (under 4,000 TEU) have reduced transits through the Suez Canal, while vessels sized between 4,000 and 7,500 TEU have increased their crossings. Ultra Large Container Ships (ULCS) over 18,000 TEU continue to avoid the region, marking an extended period of avoidance.
This shift reflects a strategic balance between operational efficiency and safety.
Global Shipping Disruptions
The rise in attacks has caused widespread disruption to global shipping. Major carriers such as MSC, Maersk, CMA CGM, COSCO, Hapag-Lloyd, and Evergreen Marine have suspended or rerouted services. For example, Maersk resumed operations late in 2023 but paused again after further attacks.
Supply chains have also been affected, with companies like Tesla and Volvo halting production due to shipment delays. Reduced traffic through the Suez Canal has impacted Egypt’s economy and highlighted global trade vulnerabilities.
Rising Insurance Costs and Security Measures
The growing risks in the Red Sea have driven insurance premiums up sharply—by 40–60% since late 2023. Some carriers refuse coverage for ships linked to Israel or the U.S. This has increased the financial burden on shipping operators.
To mitigate risks, companies are investing in enhanced security, including armed teams and advanced countermeasures like drone-jamming technology. Demand for maritime security services has surged as the industry adapts to the evolving threat environment.
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Source: Alphaliner
