Houthi attacks ships in Red Sea, shipping rates soar

Houthi spokesman Yahya Sarea said his forces fired anti-ship missiles at a US ship named “Mado” in the Red Sea and several missiles at military targets in the southern Israeli city of Eilat, vowing to continue missile and drone attacks until Israel lifts its siege on the Gaza Strip. However, the timing of these attacks was not disclosed.

Houthi forces claim to have attacked a ship in the Red Sea. Photo: Arabnews

According to Marinetraffic, Mado is a Marshall-flagged liquefied natural gas tanker sailing from Saudi Arabia's Yanbu Port to Singapore.

The US Central Command (CENTCOM) said it carried out “defensive” strikes that destroyed seven anti-ship missiles, three UAVs and three weapons containers in Houthi-controlled areas of Yemen.

Meanwhile, the Houthis accused the US-UK naval coalition in the Red Sea of carrying out 10 airstrikes on the Houthi-controlled Yemeni port city of Hodeidah.

Since November 2023, the Houthis have begun attacks on commercial shipping in the Red Sea and the Gulf of Aden in retaliation for Israeli attacks on the Gaza Strip. In response, the US and UK have been conducting airstrikes and missile strikes against Houthi targets in Yemen since mid-January 2024.

High sea freight rates

The $2,500 spread between spot ocean freight rates and long-term contract rates for containers shipped from Asia to the US West Coast is the highest since September 2021, when the spread was $2,900.

The situation is making shippers hesitant to sign contracts. Shipping lines want to sign at spot rates, which have risen due to tensions in the Red Sea, while shippers want to wait for prices to fall.

Christian Roeloffs, co-founder and CEO of container rental and trading platform Container xChange, said the market has a big difference between the price expectations of sellers and buyers.

Meanwhile, Peter Sand, an analyst at Xeneta, said time is on the side of shipping lines, as all contracts signed last year will expire by the end of April. At that time, shippers will have to ship goods at spot rates, which at the moment are not a good option.

“ Shippers can manage freight rates through contract term clauses, or freight renegotiation clauses ,” Sand stressed.

Source: https://congthuong.vn/houthi-tan-cong-tau-o-bien-do-cuoc-phi-van-tai-bien-tang-cao-309890.html