On October 7th, the volatile situation in the Middle East changed. A group of Palestinians led a brutal, live-streamed terrorist incursion into Israel, beginning a period of open warfare. A non-government rebel group in Yemen, the Houthis, has taken the side of Palestine and began a blockade of The Red Sea in protest of Western support for Israel.

What does that have to do with trucking? While the “Death to America” slogan of the Houthi rebels is not a serious danger to those of us inside the United States, the Houthis’ Red Sea blockade is a legitimate danger to international freight operations. The effects of the blockade will be felt throughout global commerce networks.

Here is an analysis of the situation:

Important Trade Routes are Disrupted: The Red Sea is an important maritime route that makes it easier to carry products between Europe, Asia, and Africa. The uninterrupted movement of international freight is hampered by Houthi attacks on commercial ships.

Expenses and Delays: Shipping companies have already rerouted ships, resulting in journeys that are thousands of miles longer, much more expensive fuel, and longer transit times. This rerouting may cause delays in the delivery of necessities, which would affect businesses that depend on on-time shipments.

Supply Chain Disruptions: When shipping lanes in the Red Sea close, businesses are forced to reevaluate their supply chain plans and may look for other routes or means of transportation. These modifications have the potential to upset well-established supply networks, resulting in shortages of products and raw resources in different areas.

Consumer Price Increases: Businesses may pass on higher freight prices to customers as a result of longer routes and supply chain delays. This situation might lead to inflationary pressures, which would impact the affordability and purchasing power of goods globally.

Global Economic Impact: The ripple effects of interrupted international freight operations go beyond the confines of specific companies and may have an effect on the stability and growth of the global economy. To lessen the effects and regain trust in international trade, governments and international organizations might need to step in, as the Biden Administration has already ordered strikes on the Houthis.