(Bloomberg) — A pause in Houthi attacks on commercial shipping has seen fuel traders import more cargoes into Europe via Egypt’s Suez Canal.
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It remains to be seen whether a renewed tensions between the militants and the US will allow the increased flows to continue.
Swaths of the shipping industry, including most fuel-tanker owners, started to avoid the short cut between Asia and Europe early last year when the Houthis began targeting vessels. A ceasefire over the past several months saw a halt in the attacks, which sought to pressure Israel over the war in Gaza.
The period of calm has seen diesel, jet fuel and other fuels increasingly reach Europe via the canal. Navigating the Red Sea is unavoidable for any ship seeking to use the waterway on voyages between the two continents.
Almost half of the shipments that arrived so far in March navigated the shorter route, compared with less than a fifth at the start of the year, data from analytics firm Kpler show.
In January, the Houthis announced a halt in attacks on vessels in the area after the ceasefire pact — but even before then incidents had already stopped for about a month. This prolonged period without attacks has encouraged some shipping companies to take the riskier Red Sea route.
In recent days, though, the rebel group renewed threats after Israel halted aid deliveries into Gaza.
That saw the Trump administration restart US military strikes, fanning tensions in the region that may yet place more shipping at risk. Despite that, there hasn’t been another attack on a merchant ship since then — possibly because there have been fewer US- or Israel-linked vessels to target in the area.
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