The terrorist attacks carried out by the Houthi militia against commercial ships passing through the Red Sea caused an increase in shipping prices for goods heading to all ports of the Arabian Peninsula.

According to the new shipping price list for 40-foot containers, Yemeni ports occupied the highest price among the rest of the region's ports. Shipping prices to the port of Hodeidah amounted to about 8 thousand dollars. And the port of Aden is about 6 thousand dollars.

According to Yemeni shipping sources, sea freight prices to Yemeni ports have increased significantly over the past few weeks. Noting that sea freight prices in the port of Hodeidah before the Houthi attacks were $5,000, and $3,200 in the port of Aden.

The sources added that the increase was gradual during the month of December with the escalation of attacks and operations carried out by the Houthi militias against shipping lines passing through the Red Sea and Bab al-Mandab. The sources expected a further increase in light of the continuation of these attacks and the reluctance of many shipping companies to suspend their commercial activity in the Red Sea and Bab al-Mandab.

The rise in sea freight prices will negatively affect the prices of food and fuel that are imported from abroad, according to economic experts. The continuation of this rise portends economic inflation that Yemen and the countries of the region will suffer from during the coming period.

The reluctance of many maritime shipping companies to operate their trips to the Red Sea and Bab al-Mandab region, placing importing entities in the public and private sectors in Yemen facing many difficulties and problems. Especially since the country depends on importing its commodity needs from abroad by 90%.

A trader in Mukalla confirms: What is happening in the Red Sea and Bab al-Mandab has serious economic repercussions on the Yemeni market. He explained that merchants and importers today face difficulty in importing and commercial shipping, with many container transport companies refusing to go to Yemeni ports.

He added: The rise in shipping and marine insurance will reflect negatively on consumers and prices. Many of the goods offered in the Yemeni market will decrease without there being local alternatives.

The economic analyst at CMC Markets consulting firm, Michael Hewson, confirmed that sea freight rates (the cost of transporting goods) have already increased by between 30% and 40% as a result of the Houthi militia attacks in the Red Sea. He added that some shipping companies may already face problems finding ships capable of transporting goods through the Red Sea and Bab al-Mandab.

He added: “If nothing is done to secure the (Red Sea) route against Houthi attacks, we could see a rise in costs that could affect the global recovery in 2024.”