Houthi attacks are an ecological disaster waiting to happen

Eunavfor Aspides/Handout via Reuters

When Iran-aligned Houthi militants first attacked vessels in the Red Sea 10 months ago, most of us in the logistics industry believed that it would trigger a short-lived disruption to global supply chains.

It seemed to us, perhaps naively, that the massive costs of rerouting ships away from the Suez Canal around the Cape of Good Hope would prompt a robust and decisive reaction from the world’s naval powers.

As it turns out, this hope has proved to be totally misplaced, highlighted by the latest incident on August 21 when the Greek-registered oil tanker, the MV Sounion, was set on fire by a number of militant projectiles.

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Only this week has the European Union’s mission in the Red Sea, Aspides, announced that it will begin a salvage operation.

Several fires continue to burn on the Greek-registered vessel, which is laden with about 1 million barrels of crude oil. Fortunately, as yet there are no visible signs of an oil spill. 

It is an unfortunate truth that western cargo ships on their way to the Suez Canal are viewed as “bargaining chips” by the Houthis as they look to extend their influence in the region’s politics and seek retaliation against Israel during the ongoing Israel-Hamas war. 

The economic repercussions of the attacks have already been huge. Not only are there extra fuel costs involved in the additional 4,000 miles required to move goods from Asia to Europe, costing by some estimates an extra $1 million a trip, but there is also the knock-on effect of reducing capacity in the shipping market, which has caused rates to rise. 

Although no oil has yet been spilt, a positive outcome will be nothing more than good fortune

Moreover, manufacturers and retailers have been forced to increase their inventory levels as each trip takes 10 to 12 days longer, pushing up financing costs and resulting in disruption to production schedules. 

Those shipowners willing to take the risk of transiting the Red Sea have seen their insurance premiums almost double, adding hundreds of thousands of dollars to each voyage. 

But this is only part of the problem, for should any oil from the MV Sounion be leaked into the Red Sea it would cause an environmental catastrophe on a scale not seen for many years.

To my mind, although no oil has yet been spilt, a positive outcome will be nothing more than good fortune.

A video of the bombs exploding on the ship’s deck shows how close it came to an ecological crisis. In the event of such a disaster, contaminated waters would degrade sea life, fish, the local fishing industry, beaches, and even desalination plants.

In February another cargo ship, Rubymar, was sunk by the Houthis while carrying 22,000 tonnes of ammonium phosphate-sulphate fertiliser and 280 tonnes of heavy fuel oil.

Countries in the region have limited capacity to clean up pollution, which means that more must be done to enable the safe recovery of stricken ships before they sink. 

It would seem obvious that more robust intervention must be undertaken to allow ships – especially those carrying hazardous cargoes – to be more easily recovered, safe from further harassment.

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Furthermore, it would seem sensible that all resources should be made available when it comes to salvage operations.

Apparently, efforts have been frustrated in previous recovery attempts by the inability of salvors to hire tug boats subject to US sanctions on Iran. Consideration should be given to waiving these restrictions when there is such a high risk of an environmental and humanitarian disaster.

Almost a year after the first Red Sea shipping attack by the Houthis, there is little sign of resolution, either through military or diplomatic means. Attempts to degrade Houthi missile sites have failed and negotiations between the various parties involved in the war in Yemen seem at a stalemate.

In what military strategists call an “asymmetric conflict” – the vast Western powers and their proxies versus a much smaller adversary (albeit one backed by Iran) – the Houthis are inflicting huge losses on the world’s economy.

While it seems little can be done to end the present geopolitical instability, the security forces present in the Red Sea should at least ensure that more is done to allow the recovery of damaged vessels and prevent a potential ecological catastrophe.

John Manners-Bell is CEO of Transport Intelligence Insight and founder of Foundation for Future Supply Chain