Red Sea Crisis: Profits Rise for Houthis and Shipping Companies

In a recent analysis, a maritime-focused website confirmed that the Red Sea crisis, caused by the Houthi group against cargo ships, has resulted in profits for both commercial companies and the Houthis.

For over a year, these attacks continued under the pretext of defending Gaza, leading to a shift in global shipping routes.

The analysis pointed out that ships began taking unconventional paths to avoid the attacks, and by the beginning of 2024, a significant decline in shipping activity through the Red Sea region was observed.

This shift contributed to an increase in shipping fees, resulting in unexpected profits for shipping companies.

By May, financial results showed that companies like Maersk and ONE had achieved quarterly profits exceeding expectations.

The President of the Taipei Shipowners' Association explained that the continuation of these attacks would force shipping companies to closely monitor the market.

While shipping companies benefited from the disruptions, the Egyptian government faced a significant budget deficit due to a decline in revenues from the Suez Canal.

With the attacks continuing, the Bab al-Mandeb Strait came under the control of the Houthis, who earned about $2 billion from these activities, signaling that the strait has become their de facto domain.

Reports indicate that some shipping companies may have paid the Houthis to allow their ships to pass without harassment, adding new complexities to the ongoing crisis in the region.