Houthi rebels extend their attacks

Don’t look now, but the Houthi rebels are at it again.

Driving the news: Iran-backed Yemeni Houthis conducted what appears to be their first attack on a cargo vessel sailing through the deep ocean and not in and around their stronghold near the Red Sea — stoking fears about increased capabilities from the group. 

Catch-up: The Houthis — a rebel group controlling northern Yemen — have been attacking cargo ships since November in a show of support with Hamas. They initially began attacking Israel-connected ships, but have been targeting U.S.- and U.K.-affiliated ones, too. 

• The attacks have led many of the world’s biggest shippers to avoid the Red Sea entirely. This has caused cargo travelling through the Suez Canal — which typically accounts for 10% of all global trade — to fall 66% between mid-December and April.

Why it matters: The drone strike occurred a month after the Houthis said they were expanding attacks to ships passing through the Indian Ocean towards the Cape of Good Hope — a trade route that has been the main alternative for ships avoiding the Red Sea.

• Rerouting vessels has already increased transit times for shipments between Asia and Europe by as many as 20 days. These delays could now grow even higher.

Big picture: While most diverted shipments don’t affect Canada directly, the attacks have still had a knock-on effect felt at ports across the world. The extended travel distances have caused the equivalent of a 9% reduction in the world’s shipping container capacity.—QH