Two more ships attacked near Yemen as a third is abandoned

The Iran-backed Houthis appeared to have stepped up their campaign against commercial shipping near Yemen after two more ships were attacked on June 23 and June 24, following the sinking of the Greek-owned Tutor on June 19.

One of the ships attacked on June 23 was identified as the Trans World Navigator, a Liberian-flagged, Greek-owned bulk carrier, according to maritime authorities from the US and the UK. Another ship has been abandoned near Yemen but the cause appears to be unrelated to the Houthis.

The most recent incident was June 24, 246 nautical miles southeast of Nishtun, Yemen, the UK Maritime Trade Operations said on X, formerly known as Twitter. It was later described as an attack after an explosion occurred close by as the ship continued on its way, UKMTO said in an update on June 24.

The attack on June 23 against Trans World Navigator was the fourth attack on the same ship by Iran-backed Houthis, Central Command said on X June 23. The ship had started from Malaysia 10 days ago and was en route to Suez, according S&P Global Commodities at Sea. Ship manager Stealth Maritime has not responded to an email for comment.

The Houthis have been attacking commercial ships since November, targeting ships connected to the US, UK or Israel in response to the Israel-Hamas war. The interests of at least 65 countries have been affected, including China, Canada, Singapore and Oman, according to a US Pentagon report earlier this month. At least 29 major energy and shipping companies have altered their routes to avoid the Houthis up through March, including BP, Maersk, QatarEnergy and Frontline, it said. War risk insurance premiums had skyrocketed by 1,000% since before the war and fuel costs were up about $1 million for each voyage that was rerouted around Africa instead of through the Red Sea.

Platts, part of S&P Global Commodity Insights, assessed the cost of taking a 130,000 mt cargo of crude from the Mediterranean to the Far East via the Cape of Good Hope at a $200,000 lump sum discount to the Red Sea voyage June 21, after flipping from a premium June 10 for the first time since the differential was first assessed April 2.

It had already become more expensive to go via the Suez Canal even before the June 12 attack on the Greek ship with Cape premiums dropping from a $1 million lump sum compared to the Red Sea when the assessment was launched.

Greek-owned Tutor June 19 became the second ship to sink from the Houthis campaign, with Rubymar being the first in March.

UKMTO also reported an incident June 23, but it was not described as an attack. After a distress call, the crew of that unidentified ship had to abandon ship because of flooding that could not be contained, UKMTO said on X. The abandoned ship remains adrift close to where the incident was reported southeast of Nishtun, it said, indicating a position that is close to the Arabian Sea.

Rising risk

"The recent spate of Houthi attacks in the Red Sea represent a significant step change in both frequency and intensity of attacks, with Houthi rebels now mounting two successful attacks utilizing Unmanned Surface Vehicles," Munro Anderson, Head of Operations at marine war risk and insurance specialist Vessel Protect, told Commodities Insights. Vessel Protect is part of Pen Underwriting.

This gives rise to questions over the utility and efficacy of the international response to combat such incidents, he said.

There's no material change to targeting methodology that the Houthis are using, this is what people are essentially confusing with no change to the risk profile, he said. The link between some targets and Israel, the US or UK has not always been clear and the targeting methodology appears to have been "pretty ad hoc" at times, Anderson said.

A continued rise in risk may not be inevitable. "There are also questions over the ability of Houthis to continue to mount these operations at the frequency and intensity currently seen, with resources a significant factor within this," Anderson said.