Despite military defense efforts from multiple countries, including the United States, the Houthi group remains undeterred and more than a year later major carriers continue to avoid the region to mitigate risks.
Since the attacks began in late 2023, hundreds of vessels across major carriers have rerouted to avoid the Red Sea, leading to historically low volumes through the Suez Canal. Despite the peak season for ocean shipments, November only saw 115 container vessels passing through the canal, a 72% decline compared to November 2023, which saw 422. This trend is expected to continue, with carriers likely to reroute around Africa or use the Panama Canal until tensions in the Red Sea are resolved. Yemen is a strong ally of Gaza and will likely not let up until a peace treaty is reached between Israel and Gaza. While discussions of a treaty remain ongoing, there is no clear timeline on when this conflict will end.
While container vessels are the most affected, they are not the only ones rerouting to avoid the Red Sea. There has also been a decline in bulk vessels and tankers. Tankers often carry hazardous materials, such as crude oil, which pose substantial environmental risks in case of attacks. General cargo vessels and Ro-Ro vessels have not been as severely impacted, but these vessel types already constitute a smaller portion of the traffic through the Suez Canal.
As vessels divert to avoid the Red Sea, transit times have increased by an average of 7-14 days for lanes that traditionally pass through the canal.
Carriers have been forced to reroute vessels, resulting in increased transit times of up to 47% on key trade lanes, especially those connecting Asia to Europe and the U.S. The rerouting has hit European ports the hardest, while the U.S. East Coast has seen less disruption due to the Panama Canal offering an alternative route. As tensions continue, the safety of front-line seafarers remains paramount, while the global supply chain faces ongoing uncertainty.