Tipsheet

Supply Chain Under Threat As Major Shipping Company Halts Critical Route Travel

Major shipping company Mearsk has halted all cargo ship travel through the Red Sea as Iranian backed Houthi terrorists continue their assault in the region. 

"Container shipping giant A.P. Moller-Maersk A/S instructed its vessels heading for the southern entrance of the Red Sea to pause their voyages after one of its carriers came under attack. The move threatens to undermine the global economic recovery and adds to pressure on the US to improve security along one of the worlds most important trade routes," Bloomberg reports. "Disruptions in the area can snarl supply chains and world trade. Back in 2021, the grounding of the Ever Given blocked the Suez Canal for almost a week, throwing ships off schedule for months and tightening the available of cargo space. That accident was estimated to have cut capacity by 20% to 30% for several weeks." 

The move comes after a Maersk ship was attacked by drones over the past 24 hours.

"Midday Dec. 14 (Sanaa time), a ballistic missile was fired from a Houthi-controlled area of Yemen toward the international shipping lane north of the Bab-el-Mandeb. There were no injuries or damage. Following the missile launch, the M/V Maersk Gibraltar was hailed by the Houthis, who threatened further missile attacks. The M/V Maersk Gibraltar is a Hong Kong-flagged cargo container vessel," CENTCOM released in a statement. "While this incident did not involve US Forces, we continue to closely monitor the situation. These attacks continue to threaten international maritime security."

On Friday, attacks against other ships in the area were successful. 

"A ballistic missile fired by Yemen’s Houthis slammed into a cargo ship Friday in the Red Sea near the strategic Bab al-Mandeb Strait, following another attack only hours earlier that struck a separate vessel, authorities said. The missile attack on the MSC Palatium III and the earlier assault on the Al Jasrah escalate a maritime campaign by the Iranian-backed Houthis," Alarabiya reports. "The attacks also endanger ships traveling through a vital corridor for cargo and energy shipments for both Europe and Asia from the Suez Canal out to the Indian Ocean."

Since October 7, when Hamas launched a brutal terrorist attack on civilians in Israel, the Houthis have been attacking ships and launching missiles at Israeli and U.S. targets. Many have been intercepted by U.S. military ships currently stationed in the region. 

In 2021, the Biden administration delisted the Houthis as a terrorist organization.