Recent attacks by Iran-backed Houthi militants on ships passing through the Red Sea are impacting global trade with immediate implications. Nearly ten shipping companies have announced changes to global shipping lanes to avoid the region, causing some lanes to take 40% longer and multiple times more expensive to handle. Countries are vowing to provide increased security in the region to minimize the attacks. In the short term, ocean freight rates out of Asia and Europe have been seen to increase significantly on new quotes over the recent days.
