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Yemen’s Houthis launched 37 drones targeting US warships in the Red Sea and Gulf of Aden on Saturday, the group’s spokesperson Yahya Saree posted on X on Saturday. US Centcom downed 28 Houthi drones and a French warship and fighter jets also downed four drones heading towards European Apsides naval vessels, Reuters reported on Saturday.
Singapore-flagged bulk carrier Propel Fortune was targeted by a Houthi attack on Friday, the Associated Press reported on Friday. The missiles used in the attack did not impact the vessel, and no damage or casualties were reported, Centcom said on X.
TheIndian Navy has evacuated all 20 crewmen and three armed guards aboard Barbados-flagged True Confidence to a hospital in Djibouti, following an attack that saw three seafarers aboard the vessel killed last week in what represented the first deaths due to Houthi attacks on shipping in the Red Sea, Reuters reported on Thursday. The vessel was journeying to Jeddah and Aqaba from China, hauling a cargo of steel products and trucks. Two of the seafarers killed are Filipino, with a third from Vietnam, the newswire said citing statements from the vessel’s owners and managers. “The vessel is drifting well away from land and salvage arrangements are being made,” the companies also said.
Wednesday’s deadly attack has renewed concerns about the welfare of seafarers aboard vessels braving the Red Sea route, the newswire added. “We call on the industry to divert ships around the Cape of Good Hope until safe transit through the Red Sea can be guaranteed,” General Secretary of the International Transport Workers’ Federation Stephen Cotton said. Labor groups successfully lobbied last month for seafarers’ rights to refuse to partake in journeys transiting the Red Sea.
Did the sinking Rubymar’s anchor sever Red Sea data cables?Rubymar’s anchor was “most likely” the cause behind damage to three subsea data cables off of Yemen’s coast, Bloomberg reported last week, citing comments made by US National Security Council spokesperson John Kirby. Cable operators plan to begin repairs in early 2Q, but the timeline is dependent on receiving work permits in Yemen’s waters, South Africa-based cable operator Seacom told Bloomberg.
Demand for shipping goods from Asia to Europe via Russian railways has surged on the back of Red Sea disruptions, as logistics companies turn to alternative routes, The Financial Times reports, citing logistics companies and railway operators. DHL estimates that the requests for railway transport via Russia have jumped 40% since the Red Sea crisis saw ships being diverted starting in December, with RailGate Europe citing up to a 35% increase and Dutch Rail Bridge Cargo indicating a 31% increase y-o-y. Many European companies including DHL, Kuehne + Nagel, and Maersk are not engaging in the use of Russian rail and road networks due to European sanctions.
Asia to Europe rail volumes are still comparatively low, with monthly volumes via the corridors falling after Russia’s invasion of Ukraine, and representing less than the cargo carried by a single large containership, the FT said.
Chinese bookings for tankers hauling crude from the Persian Gulf have seen an uptick in recent days, as the world’s largest crude importer switches to Persian Gulf-based suppliers amid Red Sea disruptions, Bloomberg reported on Thursday. Some 10 Very Large Crude Carriers (VLCCs) were booked from the Persian Gulf to China in a three-day span, a rate which the outlet notes is unusually high. Red Sea disruptions have yielded diversions to shipping routes and a hike in freight rates, spurring China to look to suppliers located alongside routes that do not require a Red Sea transit, including Persian Gulf-based exporters such as KSA, Bloomberg said.
Red Sea disruptions threaten to impede Asia’s growth and spur inflation,Bloomberg reported on Friday citing an Economist Intelligence Unit (EIU) report. The disruptions could hack 0.5% off of Asia’s growth in 2024, and boost inflation by 0.4%, as Asian exports already contending with flagging demand take hits from disruptions, with Indonesia, Malaysia, and Thailand cited as the most likely to see adverse effects, the report said. Likewise, Asian countries that import foods, in particular Pacific Islands, New Zealand, and Pakistan, could see inflation on the back of higher shipping costs, the report also said. Stronger inflation could also see countries delaying interest rate cuts, while disruptions may also lead Asian manufacturers to pursue nearshoring, EIU added.
