Attacks by the pro-Iranian Houthis have disrupted global shipping since November, forcing firms to make longer and more expensive voyages around southern Africa.
Ishan Bhanu, chief agricultural commodity analyst at data provider and analyst Kpler, said: “Almost all (dry bulk grain) ships outbound from the Americas and Western Europe are avoiding the Red Sea, with the only exception being Iran-bound ships, which still use the Red Sea route when it is shorter. All the ships we track going from the Black Sea to Asia pass through the Red Sea almost without exception,” he said.
Bhanu estimated that grain transit through the Suez Canal declined from 5.3 million metric tons in February 2023 to 2.6 million metric tons in February.
The US and Britain launched airstrikes against Houthi forces who say they are acting in solidarity with Palestinians against Israeli military actions in Gaza, while the US and other countries sent naval ships to protect civilian vessels.
“The naval operation and airstrikes in the Red Sea have been going on for weeks and it is quite clear that the Houthi attacks cannot be easily stopped militarily or provide general protection to merchant ships,” said a grain trader who books ships to export cargo from Europe. Many shipowners are still willing to accept the threat to their vessels and are still booking Red Sea sailings. China’s recent purchase of Ukrainian corn is expected to pass through the Red Sea.”
The opinions expressed herein are the author’s and not necessarily those of News2Sea.