Report
Houthi hold on Perim and Mokha raises Red Sea freight costs for Ethiopia’s Djibouti corridor
MerejaAnalysis
Houthi control of Perim and Mokha has sharply raised war-risk costs and cut traffic through the Bab el-Mandeb Strait, threatening the Djibouti corridor that carries about 90 percent of Ethiopia's trade. No very large crude carriers had transited the strait since September 9, and the Global VLCC Index hit a record roughly $97,000 a day on September 16. Higher insurance premiums and Cape of Good Hope diversions are pushing up landed prices and squeezing export margins in Addis Ababa.
