Maritime risks rise as Houthis vow to strike beyond Red Sea

Pirate hijackings along Somali coast add to concerns over safety and costs

- Kang Wan Chern

The cost of a wide range of goods from furniture to fertilisers - could shoot up in Singapore in the wake of increased attacks on shipping by armed groups and pirates, say experts.

They note that while the impact on Singapore has been manageable so far, local businesses and consumers should not be surprised to see the prices of some products rise in the coming months.

Last week, Houthi militias in Yemen responsible for attacking commercial ships in the Red Sea shot missiles at Israeli and American ships in the Indian Ocean for the first time.

This came just hours after they vowed to extend the violence against Israeli-linked ships beyond the Red Sea, Bab Al-Mandab Strait and Gulf of Aden, Arab media reported.

The Houthis have launched attacks against around 40 commercial ships linked to Israel, the United States and Britain in the Red Sea since November 2023. Maritime risk management expert Ambrey Analytics noted that at least 16 vessels have been struck, with recent attacks becoming more aggressive.

A Houthi missile attack earlier in March struck the True Confidence in the Gulf of Aden, killing three crew members and marking the first deaths caused by the armed group on shipping since the violence began. In February, the Rubymar was hit and eventually sank, spilling some of its cargo around 41,000 tonnes of combustible fertiliser into the Red Sea.

Mr Mick Aw, senior partner of professional services firm Moore Stephens, noted: "Shipping costs have already risen significantly because of the crisis in the Red Sea.

"If the Houthis successfully target ships in the Indian Ocean, such that commercial vessels are intimidated from traversing the Indian Ocean, that could exacerbate the pressure on shipping costs." Other risks are also emerging.