[Freight Weekly] Red Sea Crisis Turns Deadly

_{🛡️Houthi attack on vessel leads to first Red Sea shipping deaths}

U.S. CENTCOM reports three crew members of the M/V True Confidence have been killed in the first major escalation by Houthi rebels. What to know:

• M/V True Confidence is a bulk carrier that flies the Barbados flag. U.S. military officials say the carrier was transiting the Gulf of Aden.

• Houthi militants launched an anti-ship ballistic missile at the vessel resulting in injuries and the crew to abandon ship. The militants claimed responsibility for the vessel attack weeks after Houthi leadership called for a “ban” on shipping through the Red Sea-Gulf of Aden trade route.

• Arsenio Dominguez, head of the International Maritime Organization, said, “Innocent seafarers should never become collateral victims.”

• U.S. and Britain have been launching retaliatory strikes against Houthi units. Deaths could lead to pressure for stronger military responses.

• The ongoing crisis in the Red Sea and the Gulf of Aden has led to increases in global shipping. In early February 2024, JP Morgan found that “shipping costs may remain elevated for some time yet.”

Bottom line: Seafarers and ocean carriers are now mourning the recent deaths. This will result in rising costs and further casualties in the ongoing Red Sea crisis.

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📰  WHAT ELSE IS GOING ON IN FREIGHT

🚂Virginia could implement a new rail safety bill: In light of the renewed focus on rail safety after about a year since the controversial East Palestine derailment, lawmakers in Virginia are about to require two-man rail crews.

✈️Air cargo has a strong start to 2024: Data provider Xeneta reports that air cargo volumes started out strong thanks to trade shifts due to the Red Sea crisis, the ongoing drought impacting the Panama Canal, and post-pandemic rebounds.

👾NY Fed reports a “modest” climb in supply chain pressures: The Federal Reserve Bank of New York reports a modest climb in supply chain pressures.

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