US Strikes Houthi Targets in Yemen

The United States and its allies recently launched air and missile strikes against Houthi rebel targets in Yemen. This response comes after the Iran-backed militia staged multiple attacks on cargo ships in the Red Sea, a vital commercial waterway.

U.S. and coalition forces "executed deliberate strikes" on

• Over 60 targets, spread over 16 Iranian-backed Houthi militant locations.
• Targets included command and control nodes, munitions depots, launching systems, and more.

The airstrikes targeted Houthi radar systems and missile storage and launch sites across Yemen, aiming to diminish the threat to shipping lanes crucial for global trade. The Iran-aligned Houthis have retaliated against international shipping, protesting Israel's actions in Gaza.

Also, Iran seized the oil tanker St. Nikolas in Gulf of Oman amid U.S. sanctions dispute, escalating tensions with the country.

Shipping and Freight Impact:

• Decrease in Suez Canal Traffic: Due to Houthi attacks, the Suez Canal has reported a 30% year-on-year decrease in ship traffic and a 40% decrease in revenues in early January 2024​.
• Rerouting of Ships: Major freight companies, including MSC, are avoiding the Suez Canal, with some vessels rerouting via the Cape of Good Hope​.

Broader Implications for Global Shipping:

• Supply Chain Disruptions: The instability in the Red Sea region threatens global supply chains, affecting freight rates and delivery times.
• International Response: The U.S. and UK have joined forces to ensure safe navigation, but concerns about further escalation remain.
• Manufacturing: Tesla just paused operations at its Berlin factory because of the Red Sea attacks. Production will be on hold from Jan 29 to Feb 11.

Source: VOA