NEW HOUTHI ACTIONS POTENTIALLY FURTHER ENDANGER SAFETY OF CREW MEMBERS OF SHIPPING IN REGION

Two new, even more ominous, events, involving the Houthi terrorists that have been attacking merchant shipping in the Red Sea/Gulf of Aden/Indian Ocean region, significantly raise risk levels for crew members on board those vessels.

First, a senior Houthi leader, in a major press conference held inside the Houthi-occupied sector of Yemen has promised that any Israeli-bound shipping will be attacked, even if it takes the circuitous Cape of Good Hope route around Africa to avoid missiles and drones. This threat broadens the risk area that shipping originating in East Asia now encounters. Also, given that Houthi attacks on EU-bound shipping not destined for Israel, though erroneously claimed by the terrorist group to be in that category, means that it considers all shipping to be a target. The safety of the Cape route is no longer assured.

Second, an even more disturbing, is the news that the captain and crew of a seized vessel have been delivered to Hamas. Although details of this act are not available, this adds a new and frightening dimension to the situation. How are shipping owners to recover their crew members with an degree o certainty, even if ransom is paid to release their vessels? Shipping companies having to deal with Hamas is frightening.

All these new factors, which will take the risk factors of shipping consumer goods, and energy, through the region, to a new and dangerous level, will only set off alarms at maritime insurance firms, as well as at the general headquarters of companies that ship goods through the area. Expect these new developments to further aid individuals engaged in trade-based money laundering (TBML), as they serve to increase uncertainty in pricing, insurance, and cost estimates.