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Maritime & Shipping
December 08, 2024
HIGHLIGHTS
Houthis continue attacks on commercial ships
Military and economic tools needed
US wants other countries to step up
The United States needs more partner countries to join the fight against Yemen-backed Houthi rebels targeting commercial and military vessels in the Red Sea, US Deputy Assistant Secretary of Defense for the Middle East Daniel Shapiro, said Dec. 8 at the IISS Manama Security Dialogues.
"We need other countries to step forward," he said on stage at the dialogues in Bahrain.
Iran-backed Houthi rebels have reportedly attacked more than 130 merchant ships in the Red Sea, the Bab al Mandab Strait, and the Gulf of Aden off Yemen's coast since the Israel-Hamas war broke out Oct. 7, 2023, claiming to support Palestinians. Insurance costs and freight rates have shot up for shipping and energy companies that have altered routes to sail around Africa to avoid the attacks, which has added more ton-mile demand and bunker consumption.
"What is needed is a whole of government effort from the US together with multilateral efforts from a range of international partners," Shapiro said.
Previous attempts to bring more Arab partners into the fight from President Joe Biden's special envoy to Yemen Timothy Lenderking have largely fallen on deaf ears. Lenderking told the Washington Post in November that he had approached the Egyptians, Saudis and other Arab partners to do more to hamper Houthi attacks.
In Bahrain, Shapiro said that military and economic tools, including increased interdiction and sanctions are required to limit Houthis' ability to resupply their arsenal. More rigorous cargo inspections going into parts, including greater UN verification, is also key.
A report published last week found that the international military response, including actions by the UK, the US and Israel, had "temporarily degraded the capabilities of the Houthis", but have had little success in significantly reducing the overall number of attacks on ships.
In fact, the Houthis' arsenal continues to develop and expand, improving its weapons systems range and accuracy, according to the report from the International Institute for Strategic Studies.
The international military response has included several multinational naval missions and military strikes against ground targets in Yemen carried out by Israel, the UK and the US.
"The long and the short of it is, it's just not enough," Wolf-Christian Paes, a senior fellow for armed conflict at IISS and one of the report's authors told S&P Global Commodity Insights.
The resilience of the global shipping industry and supply chains to adjust to the Houthi attacks has been stronger than many expected. While the number of transits through the Red Sea has been roughly cut in half, many vessels rerouted around the Cape of Good hope. That's affected ports in Israel, Jordan, Saudia Arabia, and Sudan, with Egypt being particularly hard hit.
Cash-strapped and facing high currency devaluation, Egypt's revenues from the Suez Canal have also been heavily degraded, losing at least $2 billion. The north African country has been procuring fuel oil to meet domestic demand requirements and optimize its volumes as global gas and LNG prices remained elevated compared to alternative fuels, S&P Global reported Dec. 6.
"Countries of the Red Sea and the seafaring nations of this region are among those most affected by this outrageous behavior, so we certainly need many other countries to step forward," Shapiro said.
Bahrain has been the only regional partner to join US and UK military action against the Houthis, committing a small number of troops shortly after the onset of the war in Gaza. It was the only Arab nation to sign onto the multinational Operation Prosperity Garden that aims to ensure navigational freedom in the Red Sea. That commitment followed shortly after the signing of a bilateral security pact that included a focus on bolstering maritime security.
The Comprehensive Security Integration and Prosperity Agreement, or C-SIPA, was signed in September 2023 between the US and Bahrain, which hosts the American Navy's Fifth Fleet that directs operations across the region, including in the Red Sea, and hosts thousands of US troops. Separately, under the wide-ranging C-SIPA, the Export-Import Bank of the US approved a $500 million loan guarantee to support various Bapco Energy projects.
The US and Bahrain deepened cooperation under C-SIPA, signing a geospatial initiative that will see the US National Geospatial Intelligence Agency work with Bahraini counterparts to strengthen navigation safety for both military forces and bolster maritime security across the region, according to a statement from Bahrain's National Communication Centre.
In Manama, the UK on Dec. 7 joined C-SIPA, which was designed as an open-ended pact that would aim to bring in new members.
Bahrain's Minister of Foreign Affairs Dr. Abdullatif bin Rashid Alzayani called C-SIPA and similar agreements "vital" to advancing regional security.
"We can unite like-minded partners to address specific challenges and gradually foster broader, security, stability, and interdependence," he said.