The Yemen Houthi attacks on commercial vessels in the Red Sea have led to several large shipping companies avoiding the Suez Canal. As a result, there could be significant financial losses for Egypt and potential devaluation of its currency if the trend continues. The long-term impact could also lead to the establishment of alternative trade routes. If all shipping lines choose to avoid the Canal, Egypt could lose approximately $13 million in revenue per day.
This situation is not only Egypt’s problem, as it could have a significant effect on global trade and the supply chains. The Houthi threat to the security of the Red Sea is a concern that needs to be addressed by the international community. The potential establishment of alternative transit routes, such as a logistics and trade corridor from India to the Mediterranean via Israel, could reduce transits through the Suez Canal.
The disruption in vessel traffic through the Red Sea and the Suez Canal could impact global economies and fuel security. This is a vital corridor for global trade, representing around 12% of global trade and 30% of global container traffic. Egypt may need to coordinate with the United States to address the insecurity problem in the Red Sea.
The Houthi attacks on vessels not linked to Israel may be driven by a geopolitical agenda to exercise greater influence in the region and on the Israel-Hamas war. It is essential for the international community to address these security threats and find solutions to ensure the safety of commercial vessels in the Red Sea.
