Houthi attacks in the Red Sea threaten the world’s grain supply

Due to the shelling of civilian ships by the Houthis, the transportation of grain cargoes became significantly more difficult.

Intensification of attacks by the Yemeni Houthis on merchant vessels may lead to the diversification of grain cargoes. Yes, it is more likely that a large share of agricultural products will go through the Cape of Good Hope, although most carriers are currently willing to take the risk of passing through the Suez Canal, Reuters reports.

According to Kpler experts, on average, about 7 million tons of grain pass through the Suez Canal per month. However, now about 20% of cargoes go through the Cape of Good Hope. The rerouting is also likely to have affected a major French wheat export program to China that began in December.

Among the 12 wheat shipments that left France for China last month, only 5 went through the Suez Canal, while 7 took the longer route around Africa, with two of them being turned back to the Mediterranean, according to LSEG data.

We will remind, on January 15, militants hit the Gibraltar Eagle bulk carrier, which is owned and operated by the United States, with an anti-ship ballistic missile. Although this time the ship was carrying steel products, the incident shook international grain traders.

Subsequently, on January 16, an empty Maltese-flagged bulk carrier was hit by a missile as it was transiting the Red Sea.