- Houthis allegedly collect monthly illegal fees from ships in Yemeni waters.
- Smuggling operations involve various prohibited items.
- Significant revenue is generated through customs on fuel imports.
A recent United Nations report, spanning 537 pages and covering activities from September 2023 to July 2024, has revealed significant insights into the Houthis’ involvement in illegal shipping practices in Yemeni waters. The report, as cited by Arab News, sheds light on extensive revenue generation through fees levied on ships and a well-organized smuggling network, reports SAFETY4SEA.
Illegal Shipping Fees
The report suggests that the Houthis are collecting a “safe-transit fee” from vessels sailing through the Red Sea and Gulf of Aden, reportedly amassing approximately $180 million monthly.
This illegal levy is imposed on ships to ensure safe passage without attack. A high-ranking Houthi official is allegedly managing the money transfers from shipping agencies to the militia’s accounts.
Smuggling Operations
In addition to these fees, the Houthis reportedly engage in large-scale smuggling operations. The items smuggled include weapons, drugs, telecommunications equipment, prohibited pesticides, non-compliant medicines, and cultural heritage artifacts.
Though outlined in the report, these activities have not yet been independently verified by the UN Panel.
Fuel Import Revenues
Another significant revenue source the report highlights is customs duties collected on fuel imports.
From April 2022 to June 2024, Houthi authorities reportedly generated around 994 billion Yemeni rials through such customs. It was based on the exchange rates prevailing in government-controlled areas.
This operation primarily occurs in ports under Houthi control, where the funds add to the group’s financial resources.
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Source: SAFETY4SEA
