Egypt reveals $6bn revenue hit as Houthis vow to up campaign against shipping

The Houthis vowed Sunday to keep up their attacks on merchant shipping likely to the consternation of politicians further north along the Red Sea in Egypt. 

Egypt’s foreign minister Badr Abdel Aati revealed in discussions with International Maritime Organization secretary-general Arsenio Dominguez on Friday that the Egyptian economy has taken a $6bn hit from the ongoing Red Sea shipping crisis and the drop in Suez Canal traffic. 

A spokesperson for the Houthis said in a televised address yesterday the group will continue to target any ships belonging to, linked to, or heading to Israel.

“Intelligence information confirms that many companies operating in maritime shipping affiliated to the Israeli enemy are working to sell their assets and transfer their properties from shipping and maritime transport ships to other companies,” said Yahya Sarea, the military spokesperson of the group.

Sarea said the Houthis will not recognise any changes of ownership and warned against any collaboration with these companies.

A new 537-page report sent to the United Nations Security Council highlights how the Iranian-backed Houthis have grown in terms of personnel, equipment and their ability to strike further and further away from their home base. 

Additionally, the Wall Street Journal has reported recently that Russia has provided targeted satellite data to the Houthis to help guide missiles and drones in attacks on ships in the Red Sea and the Gulf of Aden.

The Red Sea shipping crisis has helped prop up rates for many sectors this year. Latest data from Clarksons Research shows merchant shipping is on track to enjoy a 6.5% growth in tonne-miles this year, largely thanks to the Red Sea closure, the largest growth since 2010. 

UNCTAD, the United Nations’ trade and development body, recently released its latest annual shipping report with the Review of Maritime Transport 2024 clearly showing how the Houthis have helped ensure the bottom lines of containerlines remain in highly profitable territory this year.