Houthi Attacks on Ships in Red Sea Threaten Global Trade

The Red Sea connects Africa and Asia and is a vital corridor for maritime shipping. (Photo: Reuters)
The Red Sea connects Africa and Asia and is a vital corridor for maritime shipping. (Photo: Reuters)
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Houthi Attacks on Ships in Red Sea Threaten Global Trade

The Red Sea connects Africa and Asia and is a vital corridor for maritime shipping. (Photo: Reuters)
The Red Sea connects Africa and Asia and is a vital corridor for maritime shipping. (Photo: Reuters)

Tension escalated in the Red Sea after ships were attacked while crossing the vital path that links Europe to the Arabian Gulf and Sea, all the way to East Asia, raising fears of new disruptions in global trade, including energy supplies.

On Sunday, the Pentagon said a US warship and three commercial ships were attacked off the coast of Yemen, raising concerns that the Houthis, who targeted Israeli ships last month, are expanding their campaign in response to the war in Gaza.

US National Security Advisor Jake Sullivan said on Monday that the attacks were “totally unacceptable,” adding that the United States was in talks with other countries about forming a naval task force to ensure the safe passage of ships in the Red Sea.

US Central Command said it was studying “appropriate responses” to the attacks that endangered the lives of crews from several countries, as well as threatening international trade and maritime security. It added that although the attacks were carried out by the Houthis, they were “fully enabled by Iran.”

This new threat to shipping - which could affect trade from crude oil to vehicles - comes following major pressures on supply chains due to the Covid-19 pandemic and the Russian war in Ukraine, which increased inflation and led to a global economic slowdown.

“The Red Sea route matters,” Henning Gloystein at consultancy Eurasia Group told the Financial Times.

“It matters even more for the Europeans, who get all their Middle Eastern oil and LNG through the Red Sea,” he added.

Since 2019, the Houthis and other suspected Iranian proxies have attacked multiple ships in the Middle East, seized oil tankers and launched attacks using limpet mines attached to their hulls, according to a report by the Financial Times.

“The oil market has become too complacent about risks that the Gaza conflict will expand regionally and threaten oil and gas infrastructure and shipping in the Red Sea and Gulf,” Bob McNally, founder of Rapidan Energy and a former adviser to the George W Bush White House, was quoted as saying.

McNally added that material interruption in regional energy flows could reach 30 percent.

Ship-owners are now exploring safer, but more expensive, alternative routes and are demanding greater protection in Middle Eastern waters. An alternative route involves going around the Cape of Good Hope, near Cape Town, and sailing along West Africa, a much longer and more expensive path.

According to the Financial Times report, ship-owners are already having to pay more for insurance, as well as diverting vessels and investing in additional security measures.

Marcus Baker, head of marine at insurance broker Marsh, said that some insurers had already increased rates during the week before Sunday’s Red Sea attacks, in one case by as much as 300 per cent. He added that the market “is going to have to react” to the latest incidents.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
TT

Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.