World
2024.01.20 23:14 GMT+8

Who are the Houthis?

Updated 2024.01.20 23:14 GMT+8
Michael Marillier in London

Consumers are facing the threat of rising inflation as the shipping sector tries to navigate a crisis in the Red Sea. 

The 'Houthi rebels' have attacked dozens of cargo ships since November. Many vessels are now avoiding the area when they carry goods between Asia and Europe - instead, taking other routes which add thousands of miles and millions of dollars to each journey. 

That could mean trouble at the till, just a year after inflation hit double digits in Europe. 

Who are the 'Houthi rebels'?

The so-called Houthi rebels are a group of Yemeni militants with links to Iran. They've been waging a war against Yemen's government and its allies since 2014. The 'rebels' now control the western part of the country, including the capital Sanaa. 

Houthi militants started attacking ships in the Red Sea after the Israel-Palestine conflict began in late 2023 / Associated Press

Why are they attacking commercial ships in the Red Sea?

They say they're acting in support of Hamas, the Palestinian group fighting Israeli forces in Gaza. They've promised to strike ships either registered in Israel, or heading to its shores, but many targets have no clear association with the country. 

The group says it will also attack ships from the U.S. and UK - that announcement came after those countries launched airstrikes on Houthi military sites earlier this month. 

Houthi tribesmen and fighters held a rally against U.S. and UK airstrikes in January / Associated Press

How many ships have they attacked?

U.S. officials say the group is responsible for nearly 30 attacks on commercial vessels near the 'Gate of Tears' since November 19. 

What is the 'Gate of Tears'?

The Bab-el-Mandeb, or 'Gate of Tears', is a narrow strait at the southern point of the Red Sea. It leads to the Suez Canal, which provides a 'shortcut' for commercial ships sailing between Asia and Europe. 

WATCH: Houthi militants could change the face of global trade

 

How many goods pass through the Red Sea?

12-15 percent of the world's shipping traffic passes through the Suez Canal each year. These vessels carry goods that account for about 10 percent of global gross domestic product. 

Nearly 20,000 commercial ships use the Suez Canal each year / Associated Press

How did shipping companies respond?

At least 17 shipping firms put trips on hold or announced they would use the 'Cape route' to transport goods if the attacks continued. 

What is the 'Cape route'?

This route between Asia and Europe takes ships around the Cape of Good Hope, on the southern tip of Africa. They usually travel about 11,800 nautical miles over 36 days.    

How does it compare to the 'Red Sea' route? 

The Asia-Europe journey via the Red Sea is roughly 8,500 nautical miles. It lasts around 26 days. 

What does this mean for consumers?

They face the threat of higher prices. Shipping costs have already spiked - the Shanghai Containerised Freight Index shows that spot rates for the Asia-Europe route doubled between mid-December and mid-January. 

Businesses may eventually pass higher shipping costs to consumers, but prices won't go up immediately. 

Some reports suggest the crisis could add 0.5 percentage points to the UK's inflation rate at some point this year - that's if the attacks continue for a prolonged period.

WATCH: Evangelo Sipsas discusses the attacks with Lisa Donahue from business consultancy, AlixPartners

 

What are world leaders doing about it?

The United States placed the Houthis on its list of designated terrorist groups earlier this week. 

It's also part of a coalition that's aiming to prevent more attacks in the Red Sea. Pentagon officials said Operation Prosperity Guardian would feature 19 other states, including the UK, Canada, France, Italy, Norway and Spain. 

Eight of the coalition members chose not to be named when the U.S. announced the plan in December. Regional powerhouses Saudi Arabia, Egypt and the UAE do not appear to be part of the coalition.

U.S. Defense Secretary Lloyd Austin announced the formation of a Red Sea protection force last month / Associated Press

Has there been any military response?

The U.S. has launched several attacks on Houthi targets over the past month. The country's navy says it sank three boats after militants tried to board a Danish container ship on December 31. 

American and British naval forces destroyed 18 drones and three missiles launched by the Houthis just over a week later. The U.S. and UK also hit targets linked to Houthi forces during a series of airstrikes on January 11. 

U.S. Central Command says American forces struck 14 Houthi missiles positioned on launch rails inside Yemen on Wednesday.   

 

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