2023-12-24 07:34:13
Hundreds of merchant ships in the Red Sea were diverted to Taiwan, and the Three Containers followed up on global trade. Why is there a crisis once more? | CNA NEWS
The Yemeni rebel “Youth Movement” has recently frequently attacked cargo ships and oil tankers in the Red Sea, causing multinational shipping companies and Taiwan’s container giants to change their routes. As tensions rise in the Red Sea, the United States has formed a new alliance to join dozens of countries in escorting the sea. Why did this wave of rebel attacks trigger international joint action? How will this Red Sea crisis affect the global economy?
Latest update: 2023/12/24 19:45
Why did Yemeni rebels attack Red Sea ships?
After the war broke out between Israel and Hamas in October, the Yemeni Shia radical group “Youth Movement” launched missile and drone attacks on Israel on the grounds of supporting the Palestinians, and repeatedly attacked and seized Israeli-related ships in the Red Sea. , on December 9, it even warned that it would attack all ships heading to Israel regardless of nationality, and asked all international shipping companies not to conduct transactions with Israeli ports.
Shipping operators from many countries suspend transit through the Red Sea
The youth movement controls much of Yemen and has continued to attack and hijack ships passing through the Bab el-Mandeb Strait at the southern end of the Red Sea in recent weeks. In order to avoid damage to ships and personnel, large shipping companies such as Maersk and Haberdash, as well as BP, suspended passage through the Red Sea; Taiwan’s three major container companies, Evergreen, Yang Ming, and Wan Hai, also followed suit, detouring and taking alternative routes.
What is the Yemen Youth Movement?
The youth movement, Hamas, and Lebanese Hezbollah are all members of the “Axis of Resistance”, a military alliance led by Iran that aims to resist the power of Israel and the United States in the Middle East. The youth movement is an organization that emerged in the 1990s. Its goal is to revive the Zaydi sect, a branch of Shia Islam, and fight once morest the Sunni regime. The youth movement expelled the Yemeni government from the northern capital Sana’a in 2014. Although the Western camp and the United Nations imposed sanctions and arms embargoes on it, the youth movement was supported by Iran, which made the civil war last for more than nine years and killed hundreds of thousands of people. People died and millions fell into famine. The United Nations Special Envoy to Yemen announced on the 23rd that the Yemeni government and the youth movement have committed to take corresponding measures towards a ceasefire.
Why is the Red Sea so important?
The Suez Canal is located to the north of the Red Sea and connects to the Mediterranean. Merchant ships cross the Suez Canal through the Red Sea and reach the Mediterranean. It is the shortest and fastest freight route from Asia to Europe. About 12% of global trade volume and 30% of container transportation pass through the Red Sea. In addition, the Bab el-Mandeb Strait southwest of Yemen connects the Red Sea and the Gulf of Aden, through which approximately 7% to 10% of the world’s oil and approximately 8% of its liquefied natural gas are transported. The suspension of the Red Sea route not only affects the transportation of goods between Europe and Asia, but also affects energy transportation.
Hundreds of merchant ships are diverted and cargo shipments may be delayed
Hundreds of merchant ships have diverted to the Cape of Good Hope in South Africa. However, detouring around Africa not only adds 10 to 14 days to the sailing time, but South Africa has insufficient ports and poor facilities, which may make it difficult to absorb the surge in traffic. Shippers such as global furniture giant IKEA have warned that product shortages may occur if shipments are delayed; Finnish elevator manufacturer Kone estimates that some shipments may be delayed by 2 to 3 weeks. In addition, more and more oil and tanker companies have also chosen to avoid oil prices. International oil prices hit a two-week high on the 20th, and China National Petroleum Corporation announced that it would increase domestic gasoline prices by 0.4 yuan per liter starting from the 25th, the highest increase in the past three and a half months.
Rising freight costs may push up inflation
Bookman, chief marketing officer of international freight platform Freightos, said that the price of shipping a container from China to the Mediterranean rose by 44% in December, reaching $2,413. Xeneta, a freight market analysis platform, estimates that switching to a longer route, between Asia and Northern Europe, may increase fuel expenses by US$1 million. Businesses will pass on the increased costs to consumers, which may push up inflation. Several international freight companies, including global shipping giant Maersk, have announced that they will charge additional fees for affected container transportation.
The United States establishes a protective alliance and more than 20 countries join it
In response to the Red Sea crisis, the United States announced the launch of “Operation Prosperity Guardian” on the 19th to protect ships crossing the Red Sea from attacks by youth movements. U.S. Defense Secretary Austin said that joint patrols will be carried out in the southern Red Sea and the Gulf of Aden. As of the 21st, more than 20 countries have joined, including the United Kingdom, Canada, France, Italy, the Netherlands, etc., but at least eight signatory countries still refuse to make it public, indicating that this action is still politically sensitive.
International naval task force escort encounters challenges
However, experts analyze that the challenges faced by this international task force are not small. Youth movement attacks have shifted to a random pattern, making it difficult for the task force to protect every merchant ship from safe passage. Furthermore, the youth movement is supported by Iran, and attack weapon technology continues to advance. In addition to launching drones and missiles, it may also use unmanned ships to distract the task force, making the situation in the Red Sea more complicated. Countries are still discussing whether to actively attack the positions of the youth movement to destroy their attack capabilities, but no specific consensus has been reached. The main concern is that such attacks may expand the Israeli-Palestinian conflict to the entire Middle East and even involve Iran.
Planning and production/Zhao Minya, Hei Li’an, Qiu Baigang
Photo source/Houthi Military Media/Handout via Archyde.com, Houthi Media Center via Associated Press, Archyde.com, Central News Agency
© 2020 Central News Agency. All rights reserved.
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