The recent ongoing Houthi operations in the Red Sea have caused a massive redirection of international trade, with serious implications for global shipping routes and costs.。The Red Sea conflict is continuing to lead to higher costs for shipping companies around the world, especially from Asia to North America.。

Despite multiple rounds of retaliatory strikes by the United States and its allies and multinational naval operations, the Houthis have not stopped attacking.。As a result, shipping companies have avoided the Red Sea, the main channel for 12% of the world's maritime trade.。More than 500 container ships, which would have used the Red Sea and Suez Canal routes, now have to bypass the Cape of Good Hope at the southern tip of Africa, increasing their voyage time。The diversion actually affects a quarter of the world's container shipping capacity。

the cost of shipping containers from china to the mediterranean has increased more than fourfold since the end of november last year。Some major companies, including Volvo Cars and Tesla, had to suspend production in Europe because they couldn't get components from Asia.。British retailers such as Tesco Inc. and Marks & Spencer Group Inc. also pointed to the risk of rising costs.。Shipping companies expect these disruptions to continue for months, with implications for the broader economy.。

In addition, global geopolitical trends may lead to underestimation of risks in long-term investments.。The continued aggression of the Houthis has raised concerns about their capabilities, including possessing ballistic and cruise missiles that have been upgraded with Iranian technology.。Iran's role in supporting the Houthis and other groups in its "axis of resistance" has received attention.。The conflict has exposed the fragility of global supply chains, once again highlighting the threat of other potential conflict hotspots.。