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Houthi activity in 2024 has inflicted an estimated $200 billion in economic damage globally, significantly disrupting maritime trade.
The Economist reported this.
Shipping costs have increased fivefold as vessels are forced to detour around Africa, avoiding the Red Sea and the Suez Canal. These rerouted journeys have raised fuel consumption and added approximately $1 million in costs per trip. Additionally, insurance rates for transit through the Red Sea have surged 20-fold.
Egypt, heavily reliant on revenues from the Suez Canal, has borne the greatest direct economic loss. Meanwhile, Russia and China appear to have benefited indirectly: most oil passing through the Suez Canal belongs to Russia, and the presence of Chinese vessels in the Red Sea has risen.
This disruption underscores the Houthis’ ability to affect global trade flows and highlights the geopolitical implications of instability in the region.
Read also: Russian authorities exerting pressure on residents of occupied territories – HRW
