LAST week, United States’ naval forces began engaging Houthi assets operating near the Red Sea. Although their attacks have gone down in recent months, the Houthis remain a viable threat within the area.
Contrary to their claims that they are only targeting Israeli-flagged ships, the Houthis have only engaged around 30% of them. The majority of their attacks were directed against other vessels. It is because of these indiscriminate attacks that shipping in the Red Sea remains risky despite fewer recent attacks.
The US has taken a risky move of attacking the Houthis to change all this. I personally believe that the attacks are meant to send a message to Iran, which is the puppeteer behind the Houthis. It’s the same with US bombers massing into Diego Garcia. US President Donald Trump wants to negotiate a stop to the Houthi operations in the Red Sea. Others argue that Trump does not want negotiations but an excuse to attack Iran. Only time will tell who is right.
I personally believe that Trump’s administration only wants to reopen Red Sea Trade, and restore freedom of navigation in the area (and not get even more involved in the Middle East). Freedom of navigation is explicitly stated as a US national interest.
Despite the presence of European naval vessels guarding the area, they have not been able to restore blanket Freedom of Navigation. The Houthi remains a threat, and because there are no guarantees of safe passage, the shipping industry continues to be wary of the area.
If one were to consult a seafarer, they will tell you that maritime trade is not as simple as piloting a ship from point A to Point B. It requires logistics, insurance, security, etc. In this case, the issue is shipping insurance.
I haven’t seen the exact figures, but maritime experts say that the reason why shipping has not returned to red sea is because insurance companies refuse to cover them, forcing ships to sail around Africa just to avoid the region due to insurance costs.
But a blanket protection from the United States may change the insurance companies’ minds. By restoring freedom of navigation, the U.S. would be able to restore confidence among shipping companies, and that, I think, is good for everybody./PN
