Alert! We leave the Red Sea

January 03 2024

Red Sea, the maritime strip, which is possibly the most strategic in the world, faces a serious threat. We close the year 2023 mired in a major maritime crisis that puts the stability of the world market at risk.

This sea is crucial for the transport of maritime goods, as it connects the Indian Ocean with the Mediterranean through the Suez Canal and the Bab el Mandeb Strait. In other words, 12% of world trade passes through this area

The civil war in Yemen has triggered a significant economic crisis, and the situation has been influenced by events in Ukraine. Soldiers are attacking oil and cargo ships, but on October 7, everything changed with the Hamas attack on Israel.

To put pressure on Israel and other powers, they are beginning to attack merchant ships. That is why many ships are choosing to take alternative routes around Africa towards the Cabo de Buena Esperanza.

In the Red Sea, not only vital goods for Europe transit, but also energy resources from countries such as Qatar, Dubai and the United Arab Emirates. This strait has become a focus of geopolitical tensions.

Blocking the Red Sea implies making a journey of 10 additional days, which results in higher transportation costs and therefore, a growth in inflation and increased prices.

In response to the crisis, the United States has launched Operation Prosperity Guardian, in which countries such as the United Kingdom, France and Italy participate. As for Spain, the Ministry of Defense has communicated that it will only participate if OTAN or the European Union decides so and always within the framework of said organizations.

For now, with ship transit through the Red Sea assured, it remains to be seen if the United States decides to carry out direct intervention in Yemen.

We will continue to pay attention to new news about the crisis in the Red Sea.  Contact us if you need help!