​​​​​​Threats by Houthi militia on commercial vessels intensify, with the most recent incident resulting in oil tanker Marlin Luanda catching fire after being struck by a missile. The fire was extinguished and the crew is reportedly safe. Earlier an attack on two US-operated Maersk ships transporting military supplies was attempted. Despite being escorted by the US Navy, the two vessels had to execute a U-turn after the attempt nearby was detected. The carrier has suspended all Red Sea transits for its subsidiary's ships as well.

More geopolitical complications are arising from the conflict, impacting global politics and commerce. The Houthis have explicitly expressed their intention to target ships affiliated with the US, UK, and any Israeli interests while facilitating safe passage through the canal for Chinese and Russian vessels that expressed their support against the Western-led military operations. Chinese-operated vessels are broadcasting their Chinese identity while transiting through the Red Sea to ensure safe transit.

Following the ongoing attacks, the US and the UK have imposed sanctions on four senior Houthi officials for their role in supporting or directing attacks on commercial shipping. These sanctions represent the first coordinated UK and US action to prevent the relevant Houthi individuals from accessing any financial resources or assets held in the UK and USA.

Supply chains and the global economy are feeling the impact of the conflict, seeing increased shipping costs, insurance premiums, and delays. As a result, industries worldwide from manufacturing to retail, are struggling with production and inventory management challenges. However, analyses suggest that the Red Sea impacts might have reached a limit, with rates in most trade routes levelling off and European lanes indexes falling back.

We will continue to provide updates as the situation evolves and work to minimise the impact on your shipments. For any immediate questions or concerns, please contact Woodland Group here.