Global tradeβs new normal?
The Red Sea attacks: how international trade is navigating choppy waters.
Three months ago, Houthi fighters from Yemen hijacked a cargo ship in the Red Sea and took the crew captive. It was the groupβs first attack on commercial shipping in response to Israelβs military offensive in Gaza. Around 30 similar assaults have followed and the US and UK have retaliated with air strikes against Houthi targets in Yemen.
The Houthi attacks have wreaked havoc with shipping in the Red Sea, forcing hundreds of ships to re-route and make the much longer journey around the bottom of Africa. Supply chains have been interrupted and insurance costs have risen for vessels still passing through the area.
With no end to the tension in the region in sight, some companies are readjusting their timelines and accepting that the current situation might become the βnew normalβ. We ask whether the Houthi attacks have changed the way we move goods around the world for ever.
(Picture: Ships crossing the Suez Canal towards the Red Sea. Credit: EPA-EFE/REX/Shutterstock)
Presented and produced by Gideon Long
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- Mon 19 Feb 2024 08:32GMTΒιΆΉΤΌΕΔ World Service
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