News / More danger to box ships as Houthis expand Red Sea attack arena

CMA CGM's Lobivia. Photo: Vessel Finder

22/07/2024

Concerns are mounting that the arena of operations for Houthi strikes against commercial shipping in the Red Sea has expanded, following a series of further attacks at the weekend.

After the Iran-backed militia struck Tel Aviv on Friday, killing one person and wounding at least 10, the Israeli military responded with airstrikes against Yemen’s port city of Hodeidah that left three dead and more than 90 injured. This, in turn, prompted a failed retaliatory attack on Eilat that was intercepted.

Vespucci Maritime CEO Lars Jensen warned that the actions may represent a change in Houthi capabilities and aims.

On LinkedIn, Mr Jensen said: “How the Houthis managed a successful drone hit on Tel Aviv is not known, but it underscores their previous threat to also target shipping in the Eastern Mediterranean.

“And by extension, this means that not only the south, but also the full extent of the Red Sea could potentially be a risk area for shipping.”

Mr Jensen said the drone may not have been launched from Yemen itself, but noted the ability to strike deep into Israel served as a warning, adding: “It can only be seen as a clear indication that shipping is potentially at risk from the Houthis in a larger area.”

And Houthi spokesperson Mohammed Abdulsalam told Al Jazeera there would be “no red lines, all sensitive institutions will be a target for us”.

Since attacks began late last year, Red Sea container throughput has collapsed by some 90% according to a Defence Intelligence Agency report last month.

“For many shipping companies, the combined costs of crew bonuses, war-risk insurance, roughly 1,000% more than pre-war, and Suez transit fees make the additional time and financial costs travelling around Africa less expensive by comparison,” claimed the report.

It noted: “As of mid-February, insurance premiums for Red Sea transits have risen to 0.7% to 1% of a ship’s total value, compared with less than 0.1% prior to December.”

The weekend saw two attacks on box ships, according to the UK Maritime Trade Organisation, with Mr Jensen, who has been providing daily updates on attacks, noting one vessel hit was the 2,000 teu CMA CGM-operated Lobivia, deployed on its India Gulf Red Sea Express service.

Another incident involved the 5,000 teu Pumba, which received minor damage after two drones exploded close to it, before a missile splashed into the sea nearby.

Claiming the vessel belonged to an American company, the Houthis once again appear to have been playing fast and loose with the truth: the Pumba is chartered by Singaporean operator SeaLead.

In a statement, SeaLead confirmed that no crew members were harmed or missing, noting that it “commends the crew for their bravery and strict adherence to safety protocols during this event” before adding that the vessel “has resumed its planned voyage and is expected to reach its destination safely”.

Hans-Henrik Nielsen, global development director at CargoGulf, said the situation remained “very fragile”, given the increasing attacks occurring “far away from the Red Sea”.

On LinkedIn, Mr Nielsen speculated: “My guess is that all larger container tonnage will continue with Cape of Good Hope passages until at least the new year. And I would not be at all surprised, if we see further strong upticks in freight rate levels in the coming weeks/months.

“Q2 delivered stellar financial results, and Q3 is now (from a booking time perspective) already halfway gone .. at rate levels not seen since Covid. The alleged reasons for vessel attacks are the very reasons for no tonnage being available on the charter market. Imagine, where rate levels would be, if ship owners had not ordered all the large tonnage?”