Houthi rebels escalate maritime threats, reportedly sending direct warnings to shipping companies and potentially extorting transit fees up to $180M monthly.
By SETH J. FRANTZMAN NOVEMBER 18, 2024 19:21 Updated: NOVEMBER 18, 2024 19:31A recent report indicated that the Houthis may now be sending correspondence to companies seeking to threaten them regarding shipping in the Red Sea. The report appeared in Der Spiegel. It is one of several new reports that focus on the Houthis and their tactics. The group continues to target ships, including US naval ships. This is what happens when countries appease a group such as the Houthis.
The Iranian-backed Houthis have been attacking shipping and targeting Israel since October, when Hamas carried out its massacre. They claim they are carrying out attacks to back Hamas and Gaza. The group has shifted its attacks over the last year, sometimes focusing on commercial ships, sometimes even targeting US naval vessels.
Sometimes, they also use drones to target Israel’s southern port city of Eilat. They even used a drone to target Tel Aviv.
The Houthis are what happens when the international community appeases groups like this. The Houthis were not always this powerful. They burst onto the stage in 2015, threatening the Yemen port city of Aden. Saudi Arabia led an intervention in Yemen to support the government against the Houthi rebels.
The rebels were receiving arms from Iran, including missile and drone technology. They were a clear and present danger to shipping and the region.
However, instead of the international community backing Saudi Arabia, many countries sought a ceasefire in Yemen. The Houthis grew in power. Eventually, a ceasefire left them in control of part of Yemen. They increased their arsenal, using the model of Hezbollah and Hamas. Iran prefers “non-state actor” groups because they are not held accountable by the international community. This is the best of both worlds for Iran. The groups can become stronger than the failed states they feed off.
Hezbollah is stronger than Lebanon, Hamas is stronger than the Palestinian Authority, the Houthis are stronger than Yemen, and the Iranian-backed militias in Iraq are likely stronger than the Baghdad government.
The Houthis have been attacking ships. They may also be extorting companies or finding other ways to maintain their role in seeking to basically blockade Israel. They target certain ships and certain companies. They don’t appear to target Chinese or Russian-linked ships. Iran supplies Russia with drones and has a 25-year deal with China.
The Der Spiegel report noted that "the Houthis obviously have well-researched email addresses, as the threats were also sent to individual contacts," said Irina Haesler, who is a member of the Association of German Shipowners (VDR) management. “Haesler spoke of targeted attempts at intimidation. The association is in contact with security authorities. The statement does not say how many threatening emails German shipowners have received,” the report notes.
$180 million a month
Meanwhile, Lloyd’s List noted in early November that a UN panel was investigating the Houthis. The same report noted that the group might be making $180 million a month from charging fees for transit of the Red Sea.
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“The alleged payment of fees is not the only direct interaction between the growing Houthi operations and shipping companies. According to the report, Houthi-controlled companies are importing oil and liquefied petroleum gas using false country-of-origin certificates, through Hodeidah and Ras Isa, sometimes bypassing inspections by the UN Verification and Inspection Mechanism,” the report noted.
Stories of bribes to the Houthis go back a year. The group may be finding ways to receive money illicitly.
“ShippingWatch, citing multiple Middle Eastern sources with detailed knowledge of the situation, claims that negotiations have been held to ensure Houthi rebels permit vessels from certain carriers to navigate the waters safely, in exchange, these shipping lines must assure that their cargoes do not include Israeli goods or involve docking at Israeli ports. ShippingWatch did not mention which carriers are involved,” the website GCaptain noted in January 2024. There are doubts about how much the Houthis may be receiving.
The Houthis also rejected the report that they make $180 million a month, according to a report at Lloyds List.
Even if the reports are not completely accurate, they paint a picture of how the Houthis are out of control and feel they can blackmail, extort, and threaten companies. The group also continues to target Israel despite two waves of Israeli strikes over the past year meant to deter them.
The fact is they are not deterred. In addition, the attempts by the US and other navies to secure the Red Sea have not worked so far. This is what happens when the world appeases these types of groups. The Houthis will not stop, they will grow more bold, and they now feel they can cut off international shipping at will. The Iranians back them; therefore, Iran now has a foot across one of the world’s key shipping channels.