Red Sea Tensions: How Houthi Attacks Disrupt Global Trade Routes

Picture a massive cargo ship slicing through dark waves in the Red Sea. Drones buzz overhead. Alarms blare as crew members spot incoming missiles. This scene played out too often since late 2023. Yemen’s Houthi rebels, backed by Iran, launched attacks on vessels to support Gaza amid the Israel-Hamas war. They hit dozens of ships, not just those linked to Israel. Global trade ground to a halt.

The Suez Canal, a key artery for 15% of world sea trade, felt the biggest blow. Ships dodged the area, adding weeks to journeys. An October 2025 ceasefire between Israel and Hamas brought calm. No attacks on commercial ships since. Yet risks linger. Fresh UN reports from January 2026 warn of volatility. The UN Security Council passed Resolution 2812 on 14 January, extending monitoring of Houthi actions by six months. Houthis keep their missiles ready. If Gaza fighting restarts, chaos could return. Businesses and shoppers face higher prices either way.

How Houthi Attacks Turned a Vital Waterway into a No-Go Zone

Houthi fighters fired missiles, drones, and even seized ships from October 2023. They claimed over 100 strikes by late 2024. Targets included vessels with loose ties to Israel, the US, or UK. But attacks spread wider. Crews from many nations suffered. Nine sailors died. Four ships sank.

Strikes peaked in 2024 with 150 commercial hits. That dropped to just seven in 2025 as focus shifted. Houthis turned to US warships. The US and allies hit back hard. Israel launched 125 airstrikes on Yemen ports early in 2025. The US re-labelled Houthis as terrorists. UK joined US air strikes from January 2024.

Captains scanned horizons for threats. Radar pinged false alarms. Fuel burned faster on tense watches. Ports in the Gulf of Aden emptied. International navies formed coalitions. They patrolled but could not stop every drone. For details on the ongoing crisis, check Coface’s analysis of Houthi attacks and maritime trade.

The Red Sea became a ghost lane. Trade that once flowed smooth now crawled.

The Ceasefire That Brought Temporary Quiet

The October 2025 Israel-Hamas truce changed everything. Houthis paused attacks on ships and Israel. No major incidents since. They warned of restarts if Gaza war flares up.

Yet Yemen boils. Southern factions fight Houthis. Saudi Arabia and UAE pick sides. Houthis hold strong missile stocks despite strikes. UN speakers called the area extremely volatile in January 2026 meetings.

Calm feels fragile. Test ships slip through, but full trust takes time.

Suez Canal Traffic Plummets and Forces Ships on a Costly Detour

Ships fled the Red Sea fast. Suez Canal traffic fell 50% in the first two months of 2024. Container ships dropped 75% by late that year. November 2024 saw 72% less volume than 2023. Into 2025, 9% of global capacity sat tied up in reroutes.

Captains chose the Cape of Good Hope. That detour adds 10 to 14 days for Asia to Europe runs. Trips to Germany stretch 55% longer. Freight rates spiked 80%. Charter costs jumped fourfold. Insurance premiums soared as risks mounted.

Imagine a vessel loaded with electronics from China. It chugs south past Madagascar. Extra fuel guzzles millions. Crews battle rough Atlantic swells. Ports in Rotterdam and Southampton clog with delays. African harbours see fewer calls, down 6.7% in sub-Saharan spots.

Recent signs point to hope. Maersk sent test ships like the Maersk Denver through in January 2026. See Supply Chain Digital on Maersk’s Suez return. But most still detour. Delays ripple to factories waiting for parts.

Real Numbers Behind the Canal’s Revenue Loss

Egypt’s Suez Canal lost billions. Revenue plunged with traffic. Daily transits dropped from peaks of 90 ships to under 30 at worst.

Here’s a quick look at the toll:

Sub-Saharan Africa port calls fell 6.7%. If peace holds into 2026, recovery could boost volumes. Full rerouting eases, but caution rules.

Supply Chains Strain Under Higher Costs and Delays Worldwide

Delays hit factories hard. Just-in-time makers in autos stopped lines. German plants idled without parts. UK profits dipped 40% in key sectors. Inflation crept up as costs passed to shoppers.

Asia to US East Coast added 11 days. Containers piled up. Retailers stocked extra, tying up cash. Middle East and Africa exports slumped. Farmers watched produce rot in backups.

Workers felt it too. Dockhands in Europe faced overtime chaos. Shoppers paid more for clothes and gadgets. Businesses built buffers: bigger warehouses, backup suppliers from nearshore spots.

Global trade slowed. Here’s how regions fared:

• Europe: Delays fuel inflation; Germany leads losses.
• US East Coast: 11-day waits strain ports.
• Africa/Middle East: Exports drop; ports quiet.

For supply chain effects, read Federated Hermes on Red Sea disruptions. Firms adapt, but pain lingers.

What Lies Ahead for Red Sea Shipping and Your Wallet

Shipping eyes a slow return. Maersk and CMA CGM test routes in January 2026. Bloomberg notes the milestone in Red Sea comebacks. No attacks yet, but Houthis threaten strikes.

Experts watch Gaza. If ceasefire fails or Hamas holds arms, attacks resume. UN pushes Yemen peace talks. A full Red Sea reopen could flood routes, cut rates with oversupply.

Keep an eye on UN reports. Diversify suppliers now. Stability could save your wallet from hikes. Hope builds, but prepare.

Conclusion

Red Sea tensions shook global trade. Houthi attacks slashed Suez traffic, forced detours, and jacked up costs. Factories stalled. Prices rose. The October 2025 ceasefire brought quiet, with test ships passing safe in January 2026. UN Resolution 2812 flags ongoing risks.

Yet Houthis loom with missiles. Gaza peace holds the key. Stay sharp on Yemen news. Platforms like CurratedBrief deliver quick updates on geopolitics and markets.

What do you think happens next? Share in comments. Subscribe for daily briefs. Tensions eased for now; watch Gaza and Yemen close. Stability serves us all.