The Houthi rebel group continues to have a significant impact on supply chains with numerous attacks in recent weeks. For instance, the M/V Verbena was struck, resulting in one crew member being medically evacuated to a nearby military vessel. More recently, the M/V Tutor sunk following two attacks, marking it the second vessel to sink by the Houthi group. One member of the Tutor crew is reported as missing, while the rest of the 22-member crew evacuated to safety.
Despite military defense from numerous countries, including the United States, the Houthi group remain undeterred and have been continuing with the attacks against commercial vessels in the Red Sea with no clear resolution in sight. Data from project44 details how this effects volume through the Suez Canal.
Key takeaways:
- Since the attacks began in December 2024, hundreds of vessels across all major carriers have re-routed to avoid the Red Sea. This has caused the lowest volume levels in recent history through the Suez Canal. Based on May numbers, where there is generally an uptick in sailings due to peak season starting, shippers are not resuming this route for the incoming holiday volumes. May saw nearly an 80% reduction in passages when compared to May 2023. These numbers are expected to stay low, and carriers are anticipated to continue rerouting around Africa or through the Panama Canal until tensions in the Red Sea are resolved.
- As vessels reroute to avoid the Red Sea, transit time increases by anywhere from a median of 7-10 days on lanes that leverage the canal.
- China to Europe, Southeast Asia to Europe, and Southeast Asia to the U.S. East Coast have all increased a median amount of 10-14 days. These transit times represent the new normal as carriers continue to avoid the Red Sea.
- Impacts of the attacks are apparent throughout the United States and Europe, with an overall increase in transit days of nearly 2 weeks.
