A new report by the U.S. Defense Intelligence Agency (DIA) reveals that Houthi attacks on shipping in the Red Sea and Gulf of Aden have affected at least 29 companies in over 65 countries, significantly increasing costs in various areas.
"As of mid-February, insurance premiums for transiting the Red Sea have climbed to 0.7-1.0% of a ship’s total value, compared to less than 0.1% prior to December 2023," the DIA report states.
The report also highlights that companies continuing to operate in the region face higher expenses due to additional “war risk” insurance and increased crew bonuses.
The DIA assessment found that container shipping through the Red Sea, which typically accounts for up to 15% of global maritime trade, dropped by 90% from December 2023 to mid-February 2024.
Shipping companies avoiding the Red Sea are incurring higher costs, with rerouted trips around Africa adding approximately $1 million to the journey's expenses.
Aid efforts are also being impacted. "As of February, humanitarian relief for Sudan and Yemen is being delayed by weeks and costing aid organizations more due to longer routes around Africa," the report notes.
In total, the DIA documented at least 43 Houthi attacks on international shipping in the Red Sea and Gulf of Aden between November 2023 and March 2024.
The Houthis claim their attacks in the Red Sea and Gulf of Aden are acts of solidarity with Palestinians in Gaza amid the ongoing conflict between Israel and Hamas.
These attacks show no signs of abating. According to U.S. Central Command, which oversees U.S. military operations in the Middle East, Houthi militants have launched at least 10 missiles, two aerial drones, and one surface drone against targets in the Red Sea and Gulf of Aden since June 9.
On Wednesday, a Houthi naval drone struck the M/V Tutor, a Liberian-flagged, Greek-owned vessel that had recently docked in Russia, causing severe flooding and engine room damage, CENTCOM reported.
In December, the U.S. and eight other nations launched Operation Prosperity Guardian to protect ships in the region from Houthi attacks.
