When President Trump ordered a strike against Houthi militia in Yemen last weekend, he said militia attacks on commercial transport in the Red Sea have damaged global trade.
“These ruthless attacks cost the U.S. and the world economy billions while putting innocent lives at risk,” he said of the truth socialization.
But it may take months to get the shipping company back to the Red Sea, and it may take more to get the Suez Canal, and it may require air strikes on Hotis. Over the past year, Ocean Airlines has avoided the Red Sea by sending ships from Asia to Europe around the tip of southern Africa, this time sailing about 3,500 nautical miles, longer and longer.
The transportation industry has largely adapted to the destruction, and even profited from the growth in transportation speed after it began attacking commercial ships in late 2023, after supporting Hamas in the war with Israel.
Shipping executives said they do not intend to return to the Red Sea until there is a wide Middle East peace agreement that includes the decisive defeat of Hotis or Iran-backed militias.
“It’s either a complete degradation of its capabilities or a certain type of deal,” Vincent Clerc, CEO of the Copenhagen-based transport line, said in February.
After the U.S. strike this week, Musk said it is not ready to go back. “Prioritize the safety of crew members and the certainty and predictability of supply chains, and we will continue to sail in Africa until safely passes through the region more permanently,” a spokesperson said in a statement.
Another large transport line, MSC, said: “To ensure the safety of our seafarers and ensure consistency and predictability of the service provided to customers,” it will also continue to dispatch ships in Africa.
It is unclear how long it may take the United States to decisively calm Houthis, or that goal can even be achieved. Lieutenant General Alexus G. Grynkewich, director of operations for the Joint Staff, said the latest attack “is more extensive than the strikes during the Biden administration.” He also questioned Houthis’s ability.
But Middle Eastern experts say Hushis shows they can resist greater power and act independently of Iranian customers.
“One military solution, especially one focused on air strikes, is impossible to defeat the Houthi by permanently stopping its attack activities,” said Jack Kennedy, a national risk in the Middle East and North Africa, in S&P Global Market Intelligence.
Hossis’ attacks on commercial ships when Israel and Hamas agreed to a ceasefire in January reduced attacks on commercial ships, according to data from the Crisis Monitoring Group’s Armed Conflict Locations and Event Data Project.
However, the large transportation lines have not yet returned to the Red Sea.
In February, nearly 200 container ships crossed the Bab El-Mandeb Strait, where the opening of the strait was located in the southern Red Sea, where Houthis concentrated its attack. According to data from transportation analytics firm Lloyd’s List Intelligence.
Apart from the French company CMA CGM, the largest container shipping line is already far away from the Red Sea, but even if it exists very lightly. The company did not respond to a request for comment.
The ships are not rushing in part because executives are worried that if the Red Sea becomes dangerous again, they may have to make expensive and sudden changes to the action.
Bypasses across Africa strengthen the profits of transport lines due to all the inconvenience and increased costs.
When cash in global trade was flushed from cash in global trade during the pandemic, the two companies had ordered hundreds of new cargo planes. Usually, a large number of ships will reduce the speed of transportation. But this time it did not happen because the vessels were forced to use African routes, which increased the demand for ships and increased the cost of all large global transport routes. Last month, Mask predicted that if the Red Sea opens at the end of the year instead of the middle, it will likely have higher revenues.
That said, shipping rates from Asia to Nordic have recently dropped to their lowest levels since 2023, according to data from digital transport market Freightos.
Rico Luman, a senior economist for transport, logistics and automobiles in ING’s research, said prices fell as goods shipped at the beginning of the year. Furthermore, abrupt imports to the United States appear to have ended before Mr. Trump’s tariffs. Businesses may not order as many items as they expect consumer demand to ease in the coming months.
