The ongoing attacks on commercial ships in the Red Sea area by Iran-backed Houthi rebels in Yemen have raised concerns about the safety of crews and the impact on global trade. These attacks have the potential to disrupt the movement of goods across the oceans and increase shipping costs, which could in turn lead to higher inflation and reduced global economic growth. Furthermore, the safety and wellbeing of the seafarers working on these ships are at risk, making them the “unsung heroes” of international shipping.
Captain Chirag, a ship captain who has experienced the attacks firsthand, describes the situation as “quite scary” and “dangerous.” He reveals that his company had prepared an evacuation plan for his ship in case of emergency. Despite the air strikes conducted by the US and UK-led forces in response to the attacks, the Houthi rebels have vowed to continue targeting commercial ships. Several ships have already been hit by missiles, although no injuries have been reported so far. The stress caused by the attacks is not only affecting the crews on board, but also their families who are constantly worried about their safety.
The International Maritime Organization (IMO), responsible for keeping international shipping safe and secure, emphasizes the importance of seafarers’ welfare. Arsenio Dominguez, the secretary general of IMO, acknowledges the crucial role played by seafarers in enabling global trade, stating that “they are actually victims, innocent victims, of this particular case.” He reveals that there are ongoing diplomatic efforts to secure the release of the crew of the first attacked ship, the Galaxy Leader, which is currently held by the Houthi rebels in Yemen. However, the wider crisis is seen as one of the biggest challenges faced by the IMO, with potential negative effects on global trade and everyone on the planet.
The financial services group Allianz warns that if the crisis continues for several months, global inflation could rise by half a percentage point to 5.1%. This increase would mainly be driven by the rise in shipping rates due to the extra costs incurred by the industry in avoiding the Red Sea area. These costs include higher crew pay, increased fuel consumption, and the significant surge in “war risk” insurance premiums. Insurance broker Marsh reveals that since December, rates have risen as much as 70-fold. The extra costs and delays in shipping goods and raw materials are affecting companies such as Danone, Michelin, and Ikea.
In order to navigate safely and avoid the Red Sea, companies like Danish shipping giant Maersk are choosing the longer and safer route around the south of Africa. Vincent Clerc, the chief executive of Maersk, explains that sailing through the dangerous zones poses risks to their ships and the lives of their colleagues. However, this alternative route leads to increased shipping times and additional expenses.
Looking towards the future, Captain Chirag suggests that remotely controlled ships could be a long-term solution to reduce risks for seafarers. However, he believes it will take at least 50 years for such technology to become widespread. In the meantime, crews are content with taking the longer route and relying on accurate weather reports and charts for navigation.
The Red Sea attacks on commercial ships have significant implications for global trade, seafarers’ safety, and the economy. Efforts must be made to address the situation diplomatically and ensure the wellbeing of those working in the shipping industry while minimizing disruptions to international trade.
