The cost of global shipping is going up, in large part because of a new crisis in the Middle East: attacks on cargo ships. Container ships passing through the Red Sea are getting shot at by rockets and drones from the Houthis, a rebel group in the nation of Yemen. Approximately 12% of global trade goes through the Red Sea and the Suez Canal, and now they’re under attack.
The U.S. Navy and British allies have responded by bombing the Houthis’ positions to try to keep the Red Sea safe for cargo ships. But the Houthis seem unlikely to stop. As a result of the Houthi attacks, many cargo ships have stopped sailing through the Red Sea and are taking longer, slower, more expensive ocean routes — such as sailing around the Horn of Africa.
The Red Sea shipping crisis has the potential to bring back the kinds of supply chain snags and higher inflation that dragged down the global economy…
