The active phase of the allies’ military operation against the Houthi rebels in Yemen has led to a change in trade – in particular, Ukrainian agrarian export sea routes. After January 11, when the British-American military operation started, the status of maritime logistics in the Red Sea changed from “high risk” to “unjustified.”
The route around Africa not only costs transport companies significantly more but also increase delivery time. Compared to the standard Suez Canal route, transportation may take 8 to 12 days. The consensus estimate of the additional cost is “double digits in the millions of dollars per month.”
The new route involves the passage of ships along the west coast of Africa. To bypass the pirate region, ships must cover an additional 7,000 km. At least 12% of the world’s trade turnover passes through the Red Sea.
This route is essential for Ukraine to deliver agricultural goods to the African continent, primarily Egypt.