Written by Dave Good, CEO of Superyacht Australia
The Red Sea, a vital artery for 12% of global trade, has become a flashpoint amid escalating attacks by Yemen’s Houthi rebels. Since late 2023, the Iran-backed group has targeted shipping with drones, missiles, and sea mines, citing solidarity with Palestinians in Gaza. Their campaign has forced major shipping lines to reroute around Africa’s Cape of Good Hope, adding up to 10-14 days and $1 million per voyage in costs.
Key Activities
- High-Profile Attacks: On August 10, 2024, Houthi forces claimed responsibility for striking the Greek-owned oil tanker Sounion with multiple missiles, igniting a fire that burned for days. The vessel, carrying 146,000 tonnes of Iraqi crude bound for China, was abandoned but later extinguished. No casualties were reported.
- Ongoing Campaign: Over 80 attacks have occurred since November 2023, sinking two ships, seizing one (the Galaxy Leader), and killing four sailors. Targets include vessels linked to Israel, the US, and UK, though unrelated ships have been hit.
- Escalation Tactics: Houthis have deployed anti-ship ballistic missiles (e.g., Iranian-supplied ones with 1,000+ km range), explosive drones, and fast-attack boats. In July 2024, they sank the Tutor bulk carrier with a drone and sea drone.
Impacts on Global Trade
- Rerouting Surge: Container shipping volumes through the Suez Canal dropped 70% year-over-year. Maersk, Hapag-Lloyd, and others now avoid the route, inflating freight rates by 300-500%.
- Economic Toll: Bloomberg estimates $1 trillion in added annual costs. Energy markets face risks, with oil prices spiking on attack news.
Impacts on Superyacht Visitation
- Australian visitation: Traditionally accounting for up to 40% of foreign superyacht visitation, access from the world’s largest superyacht market in the Mediterranean via the Suez Canal ceased completely in 2024.
- Asia Pacific visitation: Key locations such as the Maldives, Sri Lanka, Thailand, and Indonesia have also been cut off from the Mediterranean based fleet. Superyacht Australia cancelled their annual Thailand Rendezvous in 2024 due to the lack of foreign yachts in the region.
- Economic Toll: The lack of access through the Suez Canal for superyachts cost Australian marinas, shipyards, and services providers and estimated $34.8M in 2024.
Outlook
- Since the 10 October 2025 ceasefire between Hamas and Israel, there have been no attacks. However, Houthis have just vowed to re-intensify operations, posting a video of past attacks on 25 Jan 26 with the words “SOON”.
- The warning comes as the United States sends the aircraft carrier USS Abraham Lincoln and several destroyers to the region amid growing pressure on Tehran.
- Analysts view the Houthi threats as indirect support for Tehran at a time of mounting U.S. diplomatic and military pressure.
- With the Red Sea already destabilized by previous attacks, the renewed threat could transform the strategic waterway into a focal point for regional confrontation once again.
Sources: Reuters, US Naval Institute, Lloyd’s List, Bloomberg
