News / Red Sea shipping still vulnerable to attack, despite airstrike 'protection'

Photo: © Andrew Cline | Dreamstime.com

Joint US and UK airstrikes on Houthi targets have yet to yield results for the safety of international shipping, admitted US president Joe Biden yesterday, but they will continue.

His remarks preceded a further Houthi missile attack on a Greek tanker last night.

Mr Biden appeared to concede that the airstrikes were having no effect, noting: “When you say ‘working’ – are they stopping the Houthis? No. Are they going to continue? Yes.”

Evidently, the Houthi attacks will also continue as well; overnight, Marshall Island-flagged chemical tanker Chem Ranger came under missile attack.

Meanwhile, Xeneta reported that the average Far East-North Europe spot rate had increased by 181% since mid-December, to $4640 per feu, while the effect on Far East-Mediterranean trades has been more pronounced, rising to $6,050 per feu.

The Loadstar reported this week that Japanese car carriers – until now Red-Sea holdouts given the risks of voyaging round the Cape – had finally decided to detour instead of going via Suez.

And yesterday, following the news that the Shanghai Containerised Freight Index (SCFI) had reached its highest levels since the Covid pandemic, China broke its silence over the Red Sea disruption.

“The Red Sea is an important international trade route,” said Beijing’s Ministry of Commerce, adding that China would “strengthen co-ordination with relevant departments, closely follow the developments and provide timely support and assistance to foreign trade enterprises”.

China’s Shanghai International Port Group owns a port across the bay from Haifa Port, SIPG Bayport, where Cosco vessels have not called since the decision by the state shipping line not to send vessels to Israel.

Chinese vessels have not been targeted by the Houthis to date, however one expert, quoted in the UK Financial Times, described the Red Sea situation as “a very bad thing for China.”

“The Red Sea shipping route is of great importance to Chinese merchant ships. Although shipments from countries like China might be safe, the freight costs have increased.”