Houthi attack threatens security of important trade route
The consequences of the missile attack on a tanker in the Red Sea could be much more serious than it initially appeared. There is now a risk of delays on the busy trade route - with consequences for supply chains.
Experts are warning of serious consequences for the German economy as a result of the increasing number of attacks on international shipping in the Red Sea. "The latest terrorist threats to shipping in the Red Sea are also exacerbating the risk of supply chain disruptions for the German economy," said Volker Treier, Head of Foreign Trade at the German Chamber of Industry and Commerce (DIHK).
"As the most open economy of the G7 countries, Germany is particularly dependent on functioning supply chains." More than ten percent of all global trade passes through the Red Sea. The Kiel Institute for the World Economy (IfW) also expects consequences for domestic companies. "In the event of recurring attacks, transportation costs are likely to rise initially, as insurers will demand higher premiums and shipping companies will take costly security measures," said IfW trade expert Vincent Stamer.
Nevertheless, the additional costs for consumers should be limited. "As transportation costs only make up a fraction of the value of goods, end customers are unlikely to feel the impact," said Stamer. At most, price increases of up to 0.5 percent could be expected for inexpensive products. "For expensive products such as electronics, surcharges of 0.1 percent are unlikely to be significant," added the retail expert.
Tanker "Strinda" shot at
The Houthi rebels in Yemen have once again attacked a cargo ship near the Red Sea in response to the Israeli military offensive in the Gaza Strip. The Norwegian chemical tanker "Strinda" was fired upon after the crew ignored all warnings, according to the Iranian-backed militia. It announced that it would continue to block ships from entering Israeli ports until Israel allowed food and medical aid to enter the Gaza Strip.
The Shiite organization wants to support the radical Islamic Palestinian group Hamas in the war against Israel, which is also supported by Iran. The weakening global economy has already had a negative impact on world trade this year: According to the International Monetary Fund, it will only grow by 0.9 percent, after averaging 3.5 percent between 2010 and 2020.
"A quarter of German companies at their international locations see supply chain disruptions as a risk to their business development," says DIHK expert Treier, commenting on a survey conducted by the Chambers of Foreign Trade. "The current security challenges in the Red Sea are also having a negative impact on the international division of labor and cooperation."
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The Huthi rebels in Yemen have intensified their attacks on international shipping, most recently targeting the Norwegian chemical tanker "Strinda" in the Red Sea. This ongoing hostility poses a significant threat to the smooth operation of the vital trade route, affecting both supply chains and the overall economy of countries like Germany, which is heavily reliant on uninterrupted global trade.
Source: www.ntv.de
