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Red Sea attacks: US forms 10-country naval coalition dubbed 'Operation Prosperity Guardian'
US says escalation in Houthi attacks from Yemen against commercial vessels "demands collective action"
The US Secretary of Defense Lloyd J Austin III announced the new coalition, which counts the UK, Bahrain, Canada, France, Italy, the Netherlands, Norway, Spain and the Seychelles as members.
Widely tipped for days by the US, the alliance is called Operation Prosperity Guardian and is being described by the Pentagon as a "new multinational security initiative under the umbrella of the Combined Maritime Forces and the leadership of its Task Force 153, which focuses on security in the Red Sea".
"The recent escalation in reckless Houthi attacks originating from Yemen threatens the free flow of commerce, endangers innocent mariners, and violates international law. The Red Sea is a critical waterway that has been essential to freedom of navigation and a major commercial corridor that facilitates international trade. Countries that seek to uphold the foundational principle of freedom of navigation must come together to tackle the challenge posed by this non-state actor launching ballistic missiles and uncrewed aerial vehicles (UAVs) at merchant vessels from many nations lawfully transiting international waters," the US Department of Defense statement said.
The US Navy has recently redeployed its aircraft carrier USS Dwight D. Eisenhower and its flotilla to the Gulf of Aden between Somalia and Yemen, according to multiple news outlets and ship tracking sites. And guided-missile destroyer USS Laboon was moved from the Red Sea from the Suez Canal on Monday.
Shipping’s largest trade lobby, the International Chamber of Shipping (ICS) said it welcomed the announcement of Operation Prosperity Guardian, pointing out that exactly what measures the new operation includes have not been confirmed.
"The full details of this operation will be shared over the coming days but we expect the taskforce to have a significant impact on the Houthi’s ability to target and attack merchant shipping. Previously we saw assets in the region operating independently against the threat, whereas now we have a co-ordinated effort across a large number of military warships that will provide a significant suppressive response. ICS welcomes the broad coalition of member states of the Operation Prosperity Guardian and urges other nations with military assets in the region to follow this lead. We call on member states to use their diplomatic influence and bring pressure to bear on the Houthis to de-escalate the increasingly volatile situation in the region," the ICS statement said.
The UN agency for maritime regulation, International Maritime Organization (IMO) also released a statement condemning attacks on commercial vessels.
IMO secretary-general Kitack Lim said, "The rerouteing of commercial shipping by several globally operating companies is a direct response to the current threat. These measures are aimed at protecting seafarers from harm and minimising the potential economic impact on world trade, which is highly dependent on shipping. The IMO Secretariat is closely monitoring developments and communicating with relevant stakeholders, including the shipping industry, IMO Member States, and United Nations partners."
- Red Sea attacks: BP, Maersk Tankers, Euronav look to halt or reroute tankers
- Red Sea attacks: Maersk, CMA CGM, Evergreen and OOCL halt services, Hapag-Lloyd and MSC redirect
- More ships under fire in Red Sea strait, as Ardmore confirms attack on tanker
- Houthis hit Norwegian tanker in Red Sea after threatening all ships heading to Israel
- As missiles fly, warnings for mariner safety follow in Red Sea region
Trade impacts of Red Sea attacks
Maritime consultancy Clarksons Research said at least 13 vessels have come under attack from Houthi militia in Yemen between 18 November and 17 December, with four further attacks reported on 18 December not included in the tally.
Clarksons vessel data tracking showed ship traffic through the Bab el-Mandeb Strait between the Gulf of Aden and the Red Sea down by 30% from the daily average number of vessels, down 70% in tonnage capacity, with seven container ships in the area, as compared to an average of 17 on any given day in the first half of December.
"More than 20% of seaborne container trade is estimated to pass through the Canal, with around a third of all container ship capacity deployed on services scheduled to utilise the Canal and with 45% of container ship tonnage having passed through the Canal over the last year," Clarksons Research Director Stephen Gordon said, "compared to 10% for LNG carriers, 9% for oil tankers, 7% for LPG carriers, and 4% for bulk carriers."
Travelling from Asia to North Europe, for example, via the Cape of Good Hope instead of via the Suez Canal adds an extra 3,200 miles to the voyage (or 30%), extending typical container ship voyage times from 31 days to 40 days at standard operating speeds.
Clarksons said the growing decision among shipping companies to reroute vessels due to attacks in the Red Sea could lead to significant additional tonne-mile demand.
"In a scenario in which 100% of container trade between the Far East/Middle East/ISC and Europe (both directions) was diverted away from the Suez Canal, this could add 9% to global container TEU-mile trade (or 0.8% to annual container trade for each month for which diversions continue)," Mr Gordon said.
"We would expect tighter supply/demand balances and shifts to longer routes to lead to increased container freight rates, potentially building on recent gains and coming at a time after this year’s ‘peak season’ for volumes. Meanwhile, cross-Med tanker freight rates rose by 9% on Monday, with potential for further shipping market impacts to evolve in coming days."
Multiple tanker shipping operators including BP, Maersk Tankers and Euronav announced on Monday they are following the lead of container shipping lines and avoiding the Bab el-Mandeb Strait.
An attack on the tanker vessel Ardmore Encounter on 13 December came shortly after the Houthis expanded their threat to all ships heading to Israel and claimed responsibility for a missile strike on J Ludwig Mowinckels Rederi’s Norway-flagged tanker Strinda in the Red Sea.
Ultimately, Clarksons cautioned that any increase in tonne-mile demand, rates and earnings are entirely dependent on how long the threat in the region persists and how long companies reroute vessels.
A compounding factor in the calculations is the drought in Central America that has forced Panama to restrict passage through the Panama Canal. Offering some relief to water levels and to global trade patterns, recent rains are allowing the Panama Canal Authority to slightly increase the number of daily transits.
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