Shipping in Distress: Wave of Attacks in the Red Sea

The international shipping industry faces new challenges that affect the safety and efficiency of its routes. According to a study published by the industrial insurer Allianz Commercial, more than 50 ships in the Red Sea were the targets of attacks by Houthi rebels during the period from late November to April. The consequence of this insecure situation is a significant decline in ship traffic through the strategically important Suez Canal. Near the beginning of the year, traffic was about 40 percent less compared to earlier peak times. The U.S. government regards the Houthi rebels' ties to Iran as confirmed, with financial support from Tehran also being assumed. Analysts believe that the militia is using this strategy of targeted attacks on vessels to disrupt the trade routes of Israel, which is in conflict with Hamas ruling in the Gaza Strip. The sinking of the freighter 'Rubymar', which became the target of an attack off the coast of Yemen in early March, serves as an example of the severe consequences of such attacks. Meanwhile, the potential for international trade is further weakened by other factors, such as the Panama Canal affected by water scarcity, which represents another core route. The critical water level situation leads to obstructions in traffic flow. Shipping expert Rahul Khanna from New York also points out in his analysis the potential threat posed by cyberattacks. Besides the dangers posed by conventional forms of attack, these could lead to a massive disruption of maritime traffic. Allianz Commercial, a division of the Munich-based DAX corporation Allianz, which specializes in corporate and industrial customers and also offers marine insurance, faces the difficult task of addressing this diverse threat landscape.