US, Allies Say Houthi Attacks in Red Sea Causing 'Significant' Shipping Delays, Costs

International shipping companies are being forced to "reroute their vessels" around the Cape of Good Hope amid a rise in attacks by Yemen’s Houthi rebel group on ships transiting the Red Sea, "adding significant cost and weeks of delay to the delivery of goods," the U.S. and 12 other countries said in a joint statement Jan. 3 (see 2312200045). They said the Houthi attacks on ships are "jeopardizing the movement of critical food, fuel, and humanitarian assistance throughout the world."

The statement, issued by the U.S., Australia, Bahrain, Belgium, Canada, Denmark, Germany, Italy, Japan, the Netherlands, New Zealand, Singapore and the U.K., said nearly 15% of global seaborne trade passes through the Red Sea, including significant amounts of grain, oil and liquefied natural gas. The countries warned the Houthis will face “consequences” if they continue to illegally attack cargo vessels.

They called the attacks, which have involved drones, missiles and small boats, “a direct threat to the freedom of navigation that serves as the bedrock of global trade in one of the world’s most critical waterways.” The rebel group will "bear the responsibility of the consequences should they continue to threaten lives, the global economy, and free flow of commerce in the region’s critical waterways."