Largest attack in Red Sea, no damages reported

In what has turned out to be the largest attack till date, 18 one-way attack UAVs (OWA UAVs), two anti-ship cruise missiles and an anti-ship ballistic missile were launched by Yemen-based, Iran-backed Houthis into the Red Sea.

All of them were shot down by a combined effort of F/A-18s from USS Dwight D. Eisenhower (CVN 69), USS Gravely (DDG 107), USS Laboon (DDG 58), USS Mason (DDG 87), and the United Kingdom’s HMS Diamond (D34), according to the latest post on X by the U.S. Central Command.

"This is the 26th Houthi attack on commercial shipping lanes in the Red Sea since November 19. There were no injuries or damage reported."

On January 3, 2024, 14 countries, including the U.S, issued a joint statement saying: "The Houthis will bear the responsibility for the consequences should they continue to threaten lives, the global economy, or the free flow of commerce in the region's critical waterways."

Rates set for Covid boom?
Prepare for re-routing of services (via CoGH) out of Asia to Med, Europe and US EC as a temporary normal, move more product, faster, AND secure space on available service. Expect crunch time and even higher costs, writes Peter Sand, Chief Analyst, Xeneta in his LinkedIn post.

"Data on Xeneta's platform indicates that spot market freight rates will continue to climb reaching $8,000 per FEU on Asia to Med/North Europe in less than a week. Shippers should prepare for a situation where lower paying cargoes will get rolled...as unfair as it may seem."

The magnitude of yesterday’s attack is likely to reinforce the global carriers’ position that the passage is too risky, says Lars Jensen in his LinkedIn update on the Red Sea crisis.

"On the positive side it can be argued that despite the attack, the military managed to neutralise the drones and missiles. On the negative side, it shows the Houthies are both willing and capable of not only continuing the attacks but also increasing the magnitude of the attacks."