Ships Steer Away From the Red Sea

The Houthis' intensifying attacks are pushing vessels toward much longer routes.

Open as PDF

Bab el-Mandeb Strait
(click to enlarge)

Middle East instability often impacts oil prices and disrupts global supply chains. One reason is its potential effect on commercial trade attempting to navigate its multiple geographic chokepoints. The curtailment of access to the Red Sea, which handles 10-12 percent of global trade, could significantly disrupt the world economy.

Several major shipping companies have halted vessel transits through the Red Sea due to escalating Houthi attacks on commercial ships. This disruption of the shortest shipping route from the Mediterranean to Asia will stretch supply chains, threatening higher prices. Companies must now seek and adapt to costlier, longer routes.

Geopolitical Futures
Geopolitical Futures (GPF) was founded in 2015 by George Friedman, international strategist and author of The Storm Before the Calm and The Next 100 Years. GPF is non-ideological, analyzes the world and forecasts the future using geopolitics: political, economic, military and geographic dimensions at the foundation of a nation.