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Houthi attacks on Bab el‑Mandeb disrupt Red Sea shipping, raising freight and insurance costs

On Oct 5, 2026 Houthi advances and attacks along Yemen’s Red Sea coast around the Bab el‑Mandeb have further disrupted traffic through the Suez–Red Sea corridor, forcing rerouting and lengthening voyages and raising freight, insurance and delivery costs for shippers and importers that rely on the route.

On Oct 5, 2026 Houthi advances and attacks along Yemen’s Red Sea coast around the Bab el‑Mandeb have further disrupted traffic through the Suez–Red Sea corridor, forcing rerouting and lengthening voyages and raising freight, insurance and delivery costs for shippers and importers that rely on the route.

If disruptions around Bab el‑Mandeb persist, ships will continue diverting around the Cape of Good Hope, lengthening voyages by c.10–14 days and lifting freight and marine insurance costs. That raises import bills and risks compressing Suez‑related revenues for Egypt while adding near‑term pressure on short‑dated external financing and FX for import‑dependent economies exposed to higher fuel and input costs.

Monitor official control of Mokha/Bab el‑Mandeb and any coalition naval escorts or convoy corridors in the next 7–14 days.

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