Maersk Reports Houthi Attacks Cause 66 Percent Drop in Suez Canal Traffic

Latest Developments

Danish shipping giant A.P Moller-Maersk (Maersk) announced on September 5 that traffic through the Suez Canal has decreased 66 percent since companies began diverting ships away from the Red Sea to avoid attacks launched by the Iran-backed Houthi rebels. Maersk said that the “disruptions have led to service reconfigurations and volume shifts, straining infrastructure and resulting in port congestion, delays, and shortages in capacity and equipment,” adding that “the timeline for easing these disruptions and returning to ‘normal’ remains uncertain.”

Maersk’s update follows a July notice warning that rerouting ships around Africa would impact its entire global network. Maersk said that “the cascading impact” of diverting traffic away from the Red Sea “extends beyond the primary affected routes, causing congestion at alternative routes and transshipment hubs essential for trade with Far East Asia, West Central Asia, and Europe.”

Expert Analysis

“Effective policy requires decision-makers to objectively assess whether the current policy is working. Well, the jury is in, and the administration’s current approach toward the Houthis and their Iranian benefactors is not working. Despite notable efforts by the United States and others, the worst assault on maritime trade and freedom of navigation in decades continues. If the White House’s policy is not examined and revised, expect the economic, environmental, and security consequences to grow.” — Bradley Bowman, Senior Director of FDD’s Center on Military and Political Power

“Both Egypt and Jordan, which benefit from the Red Sea’s economic advantages in shipping, have been severely impacted by continuous attacks from the Iran-backed Houthis. These attacks have worsened the already serious economic challenges facing both countries. The Houthis’ control of the strategic Bab al-Mandeb Strait will further amplify the economic repercussions for nations overlooking the Red Sea. The United States, along with all members of Operation Prosperity Guardian, must take a more aggressive role in deterring the Houthis and restoring maritime shipping in the region.” — Ahmad Sharawi, FDD Research Analyst

Houthis Disrupt Commercial Shipping, Threaten Environmental Disaster

Since November 2023, the Houthis, acting in solidarity with Hamas in Gaza, have launched dozens of attacks against commercial vessels in and around the Red Sea, disrupting global trade. On September 2, the Iran-backed rebels attacked two oil tankers transiting through the Red Sea, increasing the likelihood of an environmental catastrophe in the region. U.S. Central Command (CENTCOM) stated that both vessels were laden with crude oil, confirming that one — the Saudi Arabian-flagged MV Amjad — was carrying approximately 2 million barrels of oil at the time of the attack.

The attacks came as fires continued to burn on another ship that the Houthis attacked on August 21, the Greek-flagged MV Delta Sounion. The Sounion was transporting 1 million barrels of oil when it was attacked and consequently rendered inoperable. The ship was left anchored between Yemen and Eritrea, where it could potentially spill its cargo and cause an ecological disaster. The destruction of either the Delta Sounion or the Amjad would threaten one of the worst oil spills in history. On August 24, the U.S. State Department expressed concern that the Houthi attack on the Delta Sounion could lead to a spill “four times the size of the Exxon Valdez disaster” — referring to the 1989 disaster that resulted in 11 million gallons of oil spilling into Alaska’s Prince William Sound.

Red Sea Trade Hub

Roughly 12 percent of all global trade, amounting to approximately $1 trillion of goods per year, passes through the Suez Canal at the northwestern edge of the Red Sea. Following weeks of Houthi harassment of commercial ships, U.S. Defense Secretary Lloyd Austin announced Operation Prosperity Guardian on December 18. The initiative seeks to ensure freedom of navigation in the Red Sea, the Gulf of Aden, and the Bab el-Mandeb Strait.

In January, the White House said that Houthi attacks on shipping had affected more than 50 countries. In April, the Defense Intelligence Agency released a report on the economic impacts of the Houthi’s attack campaign, including an approximately 90 percent decline in container shipping through the Red Sea, financial strains on shipping companies forced to divert around Africa, and “compounding ongoing stress to global maritime shipping caused by interruptions at the Panama Canal due to drought.”

“10 Things to Know About the Houthis,” FDD Insight

“Houthis Attack Two More Tankers in Red Sea, Sparking Fears of Environmental Catastrophe,” FDD Flash Brief

“Red Sea Environmental Crisis Brewing After Houthi Attack,” FDD Flash Brief

“Top Global Shipping Company Warns of Global Impact of Houthi Attacks on Vessels in Red Sea,” FDD Insight