Still no safe passage through the Bab el-Mandeb Strait

Although cargo ships passing through the Bab el-Mandeb Strait have increased in the past few weeks, there is still no safe passage through the strait. As of recently, the Houthis fired at a Greek ship that was destined for Iran and some major shipping lines are still not going through the strait.  The US and the UK have hit Houthi targets along the strait and the Red Sea, and the French navy is providing safe passage for French ships, but the Houthis remain clearly in control of the strait.

With both the European and US Consumer Price Index running higher than expected while energy prices are going down, shipping rates are one of the main fundamental reasons why inflation has remained persistent this year. Shipping rates from China have gone down a little since they spiked, but they are still very elevated.

Mark Camilleri

Website Editor
Historian and Publisher