A just-released report by the U.S. Defense Intelligence Agency (DIA) finds Houthi attacks on shipping in the Red Sea and Gulf of Aden have affected at least 29 companies across more than 65 countries, driving up costs in multiple ways.
. Notwithstanding efforts by the US and its ally to mitigate the effects, Iran-backed Houthi militants in Yemen are attacking international shipping with such ferocity that it is negatively impacting trade and humanitarian efforts.

“As of mid-February, insurance premiums for Red Sea transits have risen to 0.7-1.0% of a ship’s total value, compared to less than 0.1% prior to December 2023,” according to the DIA report.

The report also noted companies that continue to transit the region face increased costs for additional “war risk” insurance and bonuses for crew members.