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Rubymar sinks triggering an environmental crisis: Belize-flaggedRubymar — a cargo ship carrying some 41k tons of fertilizers — has sunk off the coast of Yemen as a result of a Houthi attack in February, Yemen’s state news agency Saba reported on Saturday. This marks the first time a vessel targeted by Houthis has sank, Reuters added.
What happens now? The sinking is an environmental catastrophe on a level Yemen and the region have never experienced before, Reuters reported, quoting Yemen’s Foreign Minister Ahmed Awad bin Mubarak. A release of thousands of tons of fertilizer poses a serious threat to marine life due to an influx of nutrients stimulating excessive algae growth and consuming vast amounts of oxygen, University of Jordan’s Marine Science Station director Ali Al Sawalmih told the newswire. The sunken ship also poses a subsurface impact risk to ships transiting in the waterway, US Central Command said on X yesterday.
Could the Rubymar have been saved? Shipbroker Blue Fleet Group’s requests to ports in Africa, KSA, Oman, and the UAE for aid in salvaging the vessels were turned down or ignored, with the shipbroker attributing the continuing Houthi threat as driving regional ports’ lack of willingness to engage, S&P Global reported. “No one came to assist in salvaging the ship probably because they feared for their safety if they did anything, as the Houthis are very unpredictable,” the outlet cited an unnamed regional official as saying
Yemen’s Houthis have vowed to continue sinking British vessels,Reuters reported yesterday citing a post on X by the Iranian-backed groups deputy foreign minister Hussein Al Ezzi. “Yemen will continue to sink more British ships, and any repercussions or other damages will be added to Britain’s bill,” Al Ezzi said.
Houthis are blaming US and UK naval vessels in the Red Sea for a reported “glitch” in undersea communication cables,Reuters reported on Saturday, citing statements on Houthi-aligned Saba news agency. “Any glitch in these cables as a result of the militarization of the Red Sea by U.S. and British naval vessels represents a serious threat to the information security and economic and social stability for all countries of the world,” the Houthi statement said.
Grain transit through the Suez Canal plummeted to 2.6 mn tons in February, down from 5.3 mn tons in the same month last year, Reuters reported on Friday, citing Kpler lead agricultural commodities analyst Ishan Banu. Houthi attacks have seen almost all grain shipments shirking the Red Sea route, with the notable exception of shipments originating from the Black Sea or bound for Iran which continue to transit the Red Sea, Banu also said.
Speaking of Suez: The Suez Canal has lost over USD 700 mn in revenue since Houthi-led attacks on shipping began, compared to the previous period last year, Asharq Business posted on X on Friday, citing Bloomberg Intelligence figures.
Red Sea disruptions have highlighted the need for the development of new trade routes, and investments to rework logistics connections and bolster supply chains, UAE Economy Minister Abdulla bin Touq told the National on Thursday. Investments to reshore production centers and develop alternative trade routes can boost the UAE’s national economy, particularly if the US Federal Reserve moves to decrease interest rates, a move that would boost investor outlook and increase the capital available for investments, bin Touq said.
Meanwhile overland Saudi cargo routes are gaining momentum, as GCC-based shippers contend with ‘Ramadan rush,’ and look to land routes via KSA as an alternative to costly feedering, S&P Journal of Commerce reported on Friday. A spike in spot rates is also making trucking between Dammam and Jeddah more competitive, and renewing hopes for a long-awaiting “Landbridge” project which would see Dammam and Jeddah linked by rail, S&P writes. The uptick in volumes has also seen congestion at the UAE-KSA border, in addition to a 27% hike in overland trucking rates, the outlet also said.
Could KSA ports steal the spotlight from Jebel Ali? Most goods that transit via UAE’s Jebel Ali are already on their way to Saudi Arabia, Riyadh-based freight forwarder Hashim Mak told S&P. Improvements to operations at the Kingdom’s ports could see shippers bypassing Jebel Ali altogether, he added.
MEANWHILE- France’s CMA CGM will resume Red Sea transits on a “case-by-case basis,” after reevaluating the security situation in the southern Red Sea, according to a services update released last week. The situation will be assessed closely prior to each vessel’s transit, while all other vessels will continue to be rerouted around the Cape of Good Hope, the update said.
Russia is diverting China-bound liquified natural gas (LNG) cargoes around the Cape of Good Hope, Reuters reported last week citing LSEG tracking data. The longer route around Africa adds some 10 days to journeys and exacerbates a tanker shortage that Russia is facing due to US sanctions. LNG exporter Novatek relies on the Suez Canal route to ship supplies to Asia in winter months which see the Northern Sea Route closed, however, Russia is planning to open the route year-round, the newswire said.
IN DEFENSE NEWS-
An Italian naval vessel, dubbed Duilio, downed a drone which was supporting it in the Red Sea, Reuters reported citing Italian defense ministry statements. “The drone, with similar characteristics to those already used in previous attacks, was about 6 km (3.73 miles) from the Italian ship, flying towards it,” Italy’s defense ministry said. Italy is participating in Eunavfor Aspides, an EU naval mission kicked off last month to safeguard shipping in the region.
A German navy frigate, dubbed Hessen, and deployed to the Red Sea as part of EuronavApsides, downed two drones over the Red Sea on Tuesday, Reuters reported on Wednesday citing statements by German officials. The warship shot down both drones within 20 minutes of their being launched, the newswire said citing a defense ministry spokesperson. The same vessel had also tracked a suspicious drone on Monday but was unable to shoot it down, the spokesperson also said.
