Houthi: All sensitive ships will be targeted
Fears are growing that Houthi attacks on commercial shipping in the Red Sea have widened after a series of attacks over the weekend.
On Friday, Iranian-backed militias attacked Tel Aviv, killing one person and wounding at least 10 others. The Israeli military then launched an airstrike on the Yemeni port city of Hodeidah, killing three people and wounding more than 90. This in turn triggered a retaliatory attack on Eilat, which was intercepted but unsuccessful.
Lars Jensen, chief executive of Vespucci Maritime, warned that the actions could represent a change in the capabilities and objectives of the Houthis.
Lars Jensen said: "How the Houthis managed to strike Tel Aviv with a drone is unknown, but it highlights their previous threats to attack shipping in the Eastern Mediterranean."
"Broadly speaking, this means that not only the south, but the entire Red Sea region could become a shipping danger zone."
Lars Jensen said the drone may not have been launched from Yemen itself, but noted that it was able to reach deep into Israel as a warning. He added: "This can only be seen as a clear indication that broader shipping may be at risk from the Houthis."
Houthi spokesman Mohammed Abdeslam told Al Jazeera television that "there are no red lines and all sensitive institutions will be targeted by us."
According to a Defense Intelligence Agency report last month, container traffic on the Red Sea has dropped by about 90 percent since the attacks late last year.
"For many shipping companies, the combined costs of crew bonuses, war risk insurance (which is about 1,000% higher than before the war) and the Suez transit fee compare favorably with the additional time and financial costs required to travel in Africa," the report said.
"As of mid-February, Red Sea transport insurance premiums have risen to between 0.7 percent and 1 percent of the total value of ships, compared to less than 0.1 percent before December," the report noted.
There were two attacks on container ships over the weekend, according to the UK Maritime Trade Organisation. Mr Jensen, who has been providing daily updates on the attacks, noted that one of the vessels attacked was the 2,000-TEU ship Lobivia operated by CMA CGM, which is deployed on its Indian Gulf Red Sea Express route.
Another incident involved the Pumba, with a payload of 5,000 teu, when two drones exploded near it, causing minor damage to the ship, followed by a missile falling into the nearby sea.
The Houthis claimed that the ship belonged to an American company, but they appear to have covered it up again: the Pumba was chartered by Singapore-based operator SeaLead.
SeaLead confirmed in a statement that no crew members were injured or missing, noting that it "commending the crew for their bravery and strict adherence to safety protocols during this incident," adding that the ship "has resumed its planned voyage and is expected to reach its destination safely."
Hans-Henrik Nielsen, director of global development at CargoGulf, said the situation remained "very fragile" given the increasing number of attacks "far from the Red Sea."
Mr Nelson speculated on LinkedIn: "My guess is that all large container traffic will continue through the Cape of Good Hope route at least until the New Year. I wouldn't be at all surprised if we see further strong increases in freight levels in the coming weeks/months.
"The financial results for the second quarter were outstanding, and we're halfway through the third quarter (in terms of booking times)... Rates are at levels not seen since the start of the pandemic. The alleged reason for the ship attacks is precisely why there is no available tonnage in the charter market. Imagine what the rate level would be if shipowners did not order all the large tonnage vessels."
On Friday, Iranian-backed militias attacked Tel Aviv, killing one person and wounding at least 10 others. The Israeli military then launched an airstrike on the Yemeni port city of Hodeidah, killing three people and wounding more than 90. This in turn triggered a retaliatory attack on Eilat, which was intercepted but unsuccessful.
Lars Jensen, chief executive of Vespucci Maritime, warned that the actions could represent a change in the capabilities and objectives of the Houthis.
Lars Jensen said: "How the Houthis managed to strike Tel Aviv with a drone is unknown, but it highlights their previous threats to attack shipping in the Eastern Mediterranean."
"Broadly speaking, this means that not only the south, but the entire Red Sea region could become a shipping danger zone."
Lars Jensen said the drone may not have been launched from Yemen itself, but noted that it was able to reach deep into Israel as a warning. He added: "This can only be seen as a clear indication that broader shipping may be at risk from the Houthis."
Houthi spokesman Mohammed Abdeslam told Al Jazeera television that "there are no red lines and all sensitive institutions will be targeted by us."
According to a Defense Intelligence Agency report last month, container traffic on the Red Sea has dropped by about 90 percent since the attacks late last year.
"For many shipping companies, the combined costs of crew bonuses, war risk insurance (which is about 1,000% higher than before the war) and the Suez transit fee compare favorably with the additional time and financial costs required to travel in Africa," the report said.
"As of mid-February, Red Sea transport insurance premiums have risen to between 0.7 percent and 1 percent of the total value of ships, compared to less than 0.1 percent before December," the report noted.
There were two attacks on container ships over the weekend, according to the UK Maritime Trade Organisation. Mr Jensen, who has been providing daily updates on the attacks, noted that one of the vessels attacked was the 2,000-TEU ship Lobivia operated by CMA CGM, which is deployed on its Indian Gulf Red Sea Express route.
Another incident involved the Pumba, with a payload of 5,000 teu, when two drones exploded near it, causing minor damage to the ship, followed by a missile falling into the nearby sea.
The Houthis claimed that the ship belonged to an American company, but they appear to have covered it up again: the Pumba was chartered by Singapore-based operator SeaLead.
SeaLead confirmed in a statement that no crew members were injured or missing, noting that it "commending the crew for their bravery and strict adherence to safety protocols during this incident," adding that the ship "has resumed its planned voyage and is expected to reach its destination safely."
Hans-Henrik Nielsen, director of global development at CargoGulf, said the situation remained "very fragile" given the increasing number of attacks "far from the Red Sea."
Mr Nelson speculated on LinkedIn: "My guess is that all large container traffic will continue through the Cape of Good Hope route at least until the New Year. I wouldn't be at all surprised if we see further strong increases in freight levels in the coming weeks/months.
"The financial results for the second quarter were outstanding, and we're halfway through the third quarter (in terms of booking times)... Rates are at levels not seen since the start of the pandemic. The alleged reason for the ship attacks is precisely why there is no available tonnage in the charter market. Imagine what the rate level would be if shipowners did not order all the large tonnage vessels."
