Houthi rebels threaten global trade - high costs for German and EU economies due to cargo ships being shot at in the Red Sea.

Houthi rebels threaten global trade - high costs for German and EU economies due to cargo ships being shot at in the Red Sea.

According to a report by www.welt.de, there is an acute threat to global trade from attacks by Yemeni Houthi rebels on merchant ships in the Red Sea. The European External Action Service estimates the damage this will cause to the economy and global trade to be around 360 million euros per hour. These attacks result in merchant ships having to take alternative, longer sea routes to avoid the threats. This causes significant delays, higher energy costs, supply chain problems and increasing transport costs.

The effects on the market and the financial sector are clearly noticeable. Trade routes to and from Asia and Europe are severely affected by the detours, and the higher costs are leading to a decline in global trade in the Red Sea. According to US figures, 10 to 15 percent of world trade passed through the Red Sea before the attacks. The planned measures to form an international coalition to protect merchant ships and the expansion of the mandate of the EU Operation “Atalanta” are therefore of great importance.

EU governments agreed during a PSC meeting to expand the mandate of the EU military naval operation “Atalanta” to accompany merchant ships in the Red Sea. These measures are intended to help protect international shipping in the Red Sea in the future, even using armed force if necessary. Germany and other EU states are being asked to provide additional ships for this task.

The planned measures clearly show that the threat to world trade posed by the Houthi attacks is being taken seriously. They are expected to have a significant impact on the logistics and transport industry, global trade and energy prices. Companies trading with Asia or Europe should closely monitor developments as they may impact supply chains and trade routes. This geopolitical situation requires a close analysis of the economic, logistical and financial risks for companies and investors, as a long-term solution will be necessary to restore stability to global trade.