Shipping companies divert vessels from Red Sea after Houthi attacks
Newsy
Attacks on shipping in the Red Sea have prompted companies to find alternate, often longer routes for their cargo.
Since Hamas' attack on Israel October 7th, Iran-backed Houthi rebels — which control large portions of northern Yemen — have attacked numerous commercial ships making their way to the Suez Canal in Egypt.
The tensions have prompted major shipping companies to reroute their ships through the Cape of Good Hope at the southern tip of Africa.
It's a much longer route that's costing companies millions just as consumers spend big for the holidays.
The Houthi threat comes after Defense Secretary Lloyd Austin announced a multi-national coalition that will work to protect shipping in the Red Sea.
The State Department is considering re-classifying the Houthis as a terrorist organization.
