Red Sea Crisis
The Red Sea crisis began on 19 October 2023, when the Iran-backed Houthi movement in Yemen launched missiles and armed drones at Israel, demanding an end to the invasion of the Gaza Strip. The Houthis have since seized and launched aerial attacks against merchant and naval vessels in the Red Sea, drawing attacks on missile sites and other targets by US and allied forces. The crisis is linked to the Israel–Hamas war, the Iran–Israel proxy conflict, the Iran–United States proxy conflict, and the Yemeni crisis.
- Trade Facilitation: The Red Sea serves as a vital maritime trade route, facilitating the movement of goods between major markets.
- Transshipment Hub: Several ports in the Red Sea region function as transshipment hubs, where cargo is transferred between vessels for onward transportation to various destinations.
- Economic Development: The logistics sector in countries bordering the Red Sea contributes to economic development through job creation, infrastructure investment, and revenue generation.
- Maritime Security Concerns: The Red Sea faces challenges related to maritime security, including piracy, smuggling, and illicit activities.
- Infrastructure Investment: Governments and private stakeholders in Red Sea countries invest in infrastructure projects to enhance port facilities, transportation networks, and logistics services.
- Environmental Impact: Logistics activities in the Red Sea region can have environmental implications, such as pollution from vessel emissions, ballast water discharge, and port operations.
