Houthi militants, backed by Iran, continue to disrupt shipping in the Red Sea. As the unrest continues, the impact on the global economy may become greater than expected. In a new episode of ‘Flowscast’, Julie Desmet discusses this with Thierry Vanelslander, port economist at the University of Antwerp.
Since early December 2023, cargo ships on the Red Sea have been plagued by Houthi militants, a terror group from Yemen that has been given sanctuary by the Iranian regime. With multiple rocketand drone attacks on several ships, the militants say they are trying to retaliate for Israeli attacks in Gaza. Many carriers have therefore decided to avoid the Red Sea and take a diversion via the Cape of Good Hope,
Earlier, professor Christa Sys warned about a discrepancy between the extra cost and the high surcharges applied by several shipping companies. Shippers also already complained about the surcharges and went a step further by accusing some European shipping companies of misusing the situation and ‘graaiflation’.
Thierry Vanelslander, port economist and chairman of the Department of Transport and Spatial Economics at the University of Antwerp (UA) explains what impact the situation in the Red Sea is having on the logistics sector and what the effects may be in the longer term.
Our podcast can be listened to via Spotify. Each podcast is recorded with video, and especially for our subscribers, we include it here as well.
Did you miss previous episodes? No problem, you can find all podcasts in one place here. As always, we are looking for great stories. If you have any suggestions of your own, you are welcome to send them to redactie@flows.be.
