Renewed threat to Red Sea container shipping

The security of container shipping via the Red Sea for the Suez Canal faces renewed uncertainty after Houthi militants issued a warning that attacks on vessels could resume within days.

The ultimatum, delivered in a televised address on 8 March, sets a four-day deadline for Israel to reinstate humanitarian aid and electricity supplies to Gaza, which were cut earlier this month. If these demands are not met, the group has vowed to restart maritime assaults.

The Houthis had previously halted their attacks on 19 January, limiting hostilities to vessels fully owned by Israeli entities or flying the Israeli flag. This partial pause aligned with a ceasefire agreement between Israel and Hamas in Gaza, which expired on 1 March without being renewed or advancing to its next stage.

Security analysts consider the risk of renewed Houthi action to be significant. A report from S&P Global Market Intelligence has warned that if attacks resume, all vessels transiting the Red Sea and the Gulf of Aden could be at risk due to unpredictable targeting.

The ongoing uncertainty has already disrupted global supply chains, with major ocean carriers continuing to reroute vessels around the Cape of Good Hope to avoid potential threats.

The fragile security environment in the Red Sea has prompted concerns about the long-term viability of the Suez Canal as a critical global trade route. Speaking at a logistics industry conference last week, analysts predicted that hostilities in Gaza could escalate over the next year, increasing the likelihood of further instability in the region.

For shipping lines, safety remains the primary consideration. “It has to be safe, and right now it is not safe,” said Soren Toft, CEO of Mediterranean Shipping Co. (MSC). He emphasised that a return to Red Sea transits will depend on broader geopolitical agreements and security guarantees. “Could it happen next month, two months, six months? I don’t know. Eventually, it will happen,” he added.

Until stability is restored, shipping companies are likely to continue their costly and time-consuming diversions around southern Africa, further straining global trade and logistics networks.

When Red Sea transits eventually reopen, cost savings may emerge, but volatility will persist. Our cargo insurance and carrier rate agreements provide budget stability, shielding your business from market fluctuations and disruptions.

EMAIL Colin Redman today to safeguard your supply chain and ensure continuity in a changing global trade landscape.