As major shipping operators continue to steer clear of the Red Sea due to heightened risks, some companies, are launching new services in this perilous waterway.
The situation escalated on July 20, when the Houthis attempted to attack the container ship Pumba using an unmanned surface vehicle, mistakenly believing it to be American. The crew successfully neutralized the threat, and the vessel, which was en route from Jeddah to Malaysia, continued its journey without further incident. Notably, Pumba later traversed the Bab al-Mandab Strait toward China without facing further Houthi aggression.
Managed by SeaLead Shipping, a Singapore-based firm, Pumba is Liberia-flagged and has no affiliations with U.S. interests. SeaLead has clarified that its vessels operating in the Red Sea are free of connections to the U.S., the UK, or Israel. This assertion follows an earlier Houthi attack on another SeaLead-managed ship, the Pinocchio, which was similarly misidentified as American. Despite past incidents, both vessels have recently navigated the Bab al-Mandab Strait without incident.
Analysis by Maritime Spotlight indicates that the Houthis have frequently targeted ships based on outdated or incorrect ownership data. Consequently, several vessels, including those associated with Russian oil or Chinese firms, have resumed trading in the region. As conditions stabilize and the economic allure of the Red Sea trade route remains strong, some operators are tempted to risk entry into this high-risk area. Recent insights from Lloyd’s List Intelligence highlight that a growing confidence in maritime safety, coupled with economic incentives, has encouraged operators to resume services in the Red Sea, particularly those linked to Chinese interests.
Among those undeterred by the threat posed by the Houthis is SeaLead, which has not only maintained but expanded its shipping services in the region. In late 2023, as attacks escalated, the company launched new routes connecting Saudi Arabia, Yemen, and Djibouti, and recently introduced a service linking China, India, and Djibouti. This expansion underscores a potential shift in risk assessment by some operators, especially those with ties to China.
However, overall maritime traffic through the Bab al-Mandab Strait has dropped significantly, more than 60% year-over-year, as many companies remain cautious. The heightened activity of the Houthis, particularly their focus on Greek-linked crude oil tankers, has led to a mass withdrawal from the area by several shipping lines. Even major shipping companies like Maersk and Hapag-Lloyd are circumventing the Red Sea, opting instead for the longer route around the Cape of Good Hope as part of their new Gemini Cooperation initiative set to launch in February 2025.
The ongoing geopolitical tensions, particularly related to conflicts in Gaza and Lebanon, influence shipping dynamics and may prolong the current trade patterns well into 2025 and beyond. While attacks in the southern Red Sea have decreased recently, the area remains fraught with danger, with the Houthis possessing the capability to extend their maritime operations further into the Arabian Sea and Indian Ocean. The implications of these developments highlight a complex interplay between regional security, trade routes, and international maritime operations, shaping the future landscape of shipping in the Middle East.
Source: The Washington Institute