International freight is facing growing uncertainty as risks increase around two of the world’s most important shipping routes: the Strait of Hormuz and the Bab el-Mandeb Strait.
The latest concern centres on Yemen, where Houthi forces have reportedly advanced to Dhubab after capturing the Red Sea port city of Mokha. Dhubab lies opposite Perim Island, close to the Bab el-Mandeb shipping lane that connects the Indian Ocean with the Red Sea and Suez Canal.
Although reports have not confirmed full Houthi control of the town, the advance would bring the group closer to the route used by vessels trading between Asia and Europe. Commercial transits through Bab el-Mandeb are continuing, but a further escalation could lead carriers to reconsider Red Sea calls and divert more services around the Cape of Good Hope.
Such diversions can add considerable mileage and days to a voyage, while also affecting vessel rotations, equipment availability and schedule reliability.
At the same time, the Strait of Hormuz remains severely disrupted. Recent attacks and merchant-vessel incidents have reduced traffic through the Gulf well below normal levels, although some cargo movements continue. The Strait is especially important for trade to and from Gulf markets, while the wider consequences of reduced traffic can be felt across global shipping networks.
Rising oil prices may also increase fuel costs for freight services across all modes, adding another consideration for supply chains already managing changing routings and transit times.
There is currently no confirmed general closure of major Gulf container ports, including Jebel Ali, and Bab el-Mandeb remains open. However, the risks at both chokepoints underline the need for shippers to remain alert to short-notice operational changes.
Global Freight Services is monitoring developments closely and will continue to provide customers with updates on any material impact to routes, capacity and transit times.