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Houthi attacks claim first fatalities: An attack on Greek-owned, Barbados-flagged merchant ship True Confidence has resulted in the death of three seafarers yesterday around 50 nautical miles off the coast of Yemen’s port of Aden, Reuters reports, citing information from US Central Command (CENTCOM). The incident marks the first fatalities reported since Houthi-led Red Sea disruptions began last November in response to Israel’s continued conflict in Gaza. The strike injured at least four crew members and caused “significant damage” to the vessel, CENTCOM added. The vessel was reported as drifting and set ablaze with no information available regarding the 20 crew and three armed guards on board, the newswire writes.
Yemen’s Houthis have targeted two US warships in the Red Sea, Reuters reported earlier this week, citing televised statements by the group’s military spokesman Yahya Sarea. US Central Command (Centcom) confirmed downing an anti-ship ballistic missile and three suicide drones targeting the USS Carney in the Red Sea, before targetting missile and drone staging points in Houthi-controlled parts of Yemen in a reported action of “self-defense”, Centcom said on X.
Global sea freight rates are set to level off after surges seen since last November, President of the International Federation of Freight Forwarders Associations (FIATA) Turgut Erkeskin told Wam. Recent disruptions have also seen hikes to air freight rates, with prices exceeding pre-pandemic rates, he said, adding that upcoming boosts to freight capacity will have a stabilizing effect on rates. Erkeskin also highlighted the importance of workarounds and alternatives to bolstering supply chain resilience, with new trade routes, alternative transit corridors, and digital transformations all contributing to increasing the effectiveness of logistics operations.
Saudi chemical outfit Sahara International Petrochemical’s (Sipchem) has seen its shipping costs surge some 15 to 18%, as Red Sea disruptions forced longer diversions, Sipchem CEO Abullah Al Saadoun told Al Arabiya Business (watch, runtime: 1:36). Al Saadoun’s remarks came as he discussed Sipchem’s latest earnings for 2023, which saw the company’s bottomline plummet 66.5% y-o-y to SAR 1.23 bn, according to a disclosure on Saudi Exchange (Tadawul). 35% of the company’s exports are traditionally transported via the Red Sea route and were thus impacted by the recent disruptions, Al Saadoun said. On the upside, Sipchem’s European sales saw some benefits from Red Sea disruptions, as the company had large stocks in Italy, Spain, the Netherlands, Belgium, and Germany, boosting its competitiveness as a supplier in those markets when compared to those further afield in Asia, Sipchem’s chief added.
DHL’s group revenues have taken hits from sluggish global trade but Red Sea disruptions have not significantly impacted performance, DHL Group CEO Tobias Meyer told CNBC (watch, runtime: 5:16). The disruptions have seen delays to revenue streams, whereby cargoes arriving later are also billed later, but this has not had a significant impact on quarterly and annual performance, Meyer said. The delays are nonetheless “obviously a concern for our customers,” DHL’s head said, adding that the company is communicating with clients to determine shipping modes and manage delays. The disruptions have also yielded challenges in terms of managing shipping container capacity. Nevertheless, tepid growth in Europe, and weaker-than-hoped-for intercontinental trade between China and the US has had a much more profound impact on the company’s earnings, Meyer had said.
Iran does it again: Iran has seized a tanker, dubbed Advantage Sweet, in the Persian Gulf that was hauling an estimated USD 50 mn US-owned oil cargo, IRNA reports. The seizure was implemented on the basis of a court order, which ruled in favor of a group of Iranian patients suffering from a rare skin disease who claim that US and Western sanctions have prevented a Swedish-based company from exporting bandages and pharma to Iran, causing them physical and mental distress, IRNA said.
Further afield: Iraq’s Islamic Resistance targeted Israel’s port city of Haifa on Tuesday, in the second such attack in less than three days, IRNA reports, citing the group’s media. Tuesday’s attack saw the city’s power plant hit by a drone, causing a power outage at Haifa’s airport. This comes on the heels of a Friday attack which saw chemical warehouses at Haifa’s port targeted by drones, IRNA said.
ICYMI:Iran seized a Marshall Islands-flagged tanker, dubbed St Nikolas, in January, with the move coming in a tit-for-tat for the US seizure of the same tanker last year. The vessel was dubbed Suez Rajan at the time.
