The blockade imposed by the Houthi forces on the Bab al-Mandab Strait and the Red Sea is significantly disrupting the international food trade, leading to increased prices, according to Oleg Kobyakov, who is the UN Food and Agriculture Organization (FAO) liaison office director for Russia.
Speaking to TASS, Kobyakov highlighted that the cost for ship charters along this critical passage has nearly quadrupled, with cargo traffic diminishing by 30%.
He pointed out that major global shipping companies have ceased operations through the Red Sea route due to the blockade, leading to disruptions in the usual supply chains.
Consequently, shippers are now compelled to navigate an alternative path around the Cape of Good Hope, which is not only 8,000 kilometers longer but also adds 10-14 days to the journey.
This detour, along with the necessity for extra fuel, raises shipping costs by about 15%, thereby escalating food prices and contributing to inflation and decreased food affordability for consumers.
Kobyakov referenced a statement from FAO Chief Economist Maximo Torero at the Global Forum for Food and Agriculture in Berlin, highlighting the increasing navigational risks in the Red Sea and other critical waterways like the Black Sea and the Panama Canal, which are essential for global goods movement.
The Houthi group’s threat to target Israeli ships and block their passage through the Red Sea and Bab al-Mandab Strait in response to the Israeli-Palestinian conflict in Gaza has exacerbated the situation.
Since mid-November, there have been numerous attacks by the Houthis on civilian vessels in the Red Sea and the Gulf of Aden, further destabilizing the region’s maritime security.
