Each year, around $1tn worth of cargo, including oil and liquefied natural gas, flows through the Red Sea and Suez Canal. This represents nearly 15% of global seaborne trade, and about 30% of global container traffic.
Since the Yemen-based Houthi militia began attacking vessels at the end of 2023 in response to Israel's war on Gaza, shipping has dropped by 50-70%, with operators choosing to go the longer but safer route, via the Cape of Good Hope.
These detours have raised fuel and insurance costs, with war-risk premiums more than doubling. There has also been global shipping delays and economic strain.
