Houthi Attacks Brought Back Somali Pirates

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The Suez Canal, which accounted for 12% to 15% of the total global trade in 2023, recorded a 42% decrease in ship traffic in December 2023 and January 2024, according to the UN's trade and development agency, U NCTAD. The Suez Canal connects the Red Sea to the Mediterranean Sea. For instance, shipping from the UK, east Africa's key trading partner, mostly passes through the Suez Canal and the Mediterranean Sea.

These developments and others have raised the cost of shipping globally by more than 100%, and from Shanghai to Europe by 256%.

The global economy incurred a colossal loss at the peak of Somali piracy. The World Bank estimates that Somali pirates not only kidnapped seafarers but also received between US$339 million and US$413 million as ransom for hijacked ships between 2005 and 2012.

Somali pirates. Photo: Wikipedia

The threat raised the cost of shipping , as shipping firms had to spend billions of dollars to install security equipment and hire guards aboard. They also had to pay more as compensation to endangered crew and insurance for goods. One Earth Foundation , a nonprofit organization, estimated that US$7 billion was lost to Somali piracy at its peak in 2011.

Preparedness of international shipping

The threat of the Houthis and Somali pirates against maritime commerce has attracted international military responses. Prior to the latest crisis, the US, France and China maintained a significant military presence in Djibouti . This has since been activated and, in some cases, reinforced for maritime policing in the Gulf of Aden. In addition, India and Iran, among other nations, have deployed warships to the region.

The US and the UK have jointly launched airstrikes to undermine Houthi capabilities and motivations for maritime attacks in the region. But the group has intensified its attacks.

US forces rescued a hijacked tanker and arrested five Somali pirates involved on November 26 2023. The Indian navy also rescued a cargo vessel from pirates on 4 January 2024.

But the threats of maritime piracy and terrorism off the east coast of Africa have persisted. Without confidence in the current security situation in the region, many ships have rerouted around Africa to avoid the hotspot.

Previously, the threat of Somali piracy to global trade attracted a series of multinational initiatives. These included efforts to combat the Somalia-based militant group Al Shabaab and reconstruct Somalia's state authority to govern its territory.

The extent of the Somali piracy problem through its peak year. Map: Wikimedia Commons / Policity

Many countries deployed their navies to the region. The EU naval operation Atlanta commenced in the region in December 2008, and that of the US in January 2009 . Similarly, Operation Ocean Shield by N ATO started in August 2009.

Russia, China, India and Iran also deployed warships to the region. These forces joined the regional players in north and east Africa and the Arabian Peninsula to combat Somali piracy