Red Sea challenges persist

Attacks on unarmed ships have continued for more than two months now. The “Rubymar” sank last weekend following an assault by the Houthi rebels. Nobody was injured in this incident, but at least three crew members lost their lives on board of the “True Confidence” after she was hit by missiles.
Experts advise to build longer transit times into supply chain planning, which in these uncertain times seems sound advice.

With their cowardly acts of violence against defenceless crews, the Houthi-Rebels aim to amplify their political demands. Surprisingly, attempts to stabilize the region militarily have failed thus far, despite the deployment of substantial weaponry.

We still don’t expect a major disruption from this situation. But if you are engaged in global trade, you are likely to continue facing difficulties, most notably delays and higher shipping costs.