Red Sea Attacks Disrupt Global Shipping and Increase Risk for Importers and Exporters
Latest Red Sea Update
17 July 2025
Recent attacks on commercial vessels in the Red Sea have led to renewed concern over the safety of one of the world’s most important shipping lanes. Two ships, the MV Magic Seas and Eternity C, were struck and later sank earlier this month after being targeted by Houthi forces in the southern Red Sea. These attacks resulted in loss of life and significant damage to vessels and cargo, and they have added fresh disruption to global supply chains.
The Bab el-Mandeb Strait, which links the Red Sea to the Gulf of Aden and the Arabian Sea, is a vital corridor for container traffic between Europe, the Middle East and Asia. The recent escalation has now widened the designated war-risk zones, increasing insurance costs and raising the risk for vessels operating in the area.
How This Affects Global Shipping
As a result of the increased threat level, war-risk insurance premiums have risen sharply. Coverage that once cost 0.4% of a vessel’s value is now closer to 1%. For example, insuring a ship valued at 100 million US dollars may now cost around 1 million dollars for a single voyage through the region. These added costs are now filtering down through the supply chain, affecting freight rates and transit schedules.
Some shipping lines are continuing to use the Red Sea route, often with added security protocols. Others are diverting vessels around the Cape of Good Hope. This alternate route avoids the danger zone but increases voyage time by 10 to 14 days, depending on destination, and significantly increases fuel and operational costs.
Limited Naval Support and Ongoing Uncertainty
Although the European Union and other countries have deployed limited naval patrols, coverage is thin. There are not enough warships to provide consistent escort services across the region, and the threat of further attacks remains. Commercial shipping must rely on internal security measures, dynamic route planning and close monitoring.
The United Nations has acknowledged the situation and is increasing reporting on maritime security in the region. However, a long-term resolution is still unclear.
What Importers and Exporters Should Know
For businesses moving goods by sea freight through the Red Sea, current conditions may affect transit times, freight rates and scheduling. This includes shipments between Asia and Europe, as well as East Africa and the Mediterranean.
At Future Forwarding, we are actively monitoring the situation and working closely with our global network of carriers. We provide flexible routing options, real-time tracking, and updated transit information to help you make the best shipping decisions for your business.
If your supply chain is impacted or you would like to explore air freight, alternative sea routes or customs clearance support, please contact us directly.
If you have any questions or need tailored support, please contact your account manager or email us at info@ukffcl.com