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The shipping industry is calling for Red Sea action as the Houthis sink a second ship

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The shipping industry is calling for Red Sea action as the Houthis sink a second ship

By Jonathan Saul

LONDON (Reuters) – Urgent action is needed in the Red Sea to stop attacks on merchant shipping by Yemen’s Houthis, leading industry groups said on Wednesday, after the sinking of a second ship.

Iran-aligned Houthi militants first launched drone and missile attacks on the key trade route in November in what they say is solidarity with Palestinians in Gaza. In more than 70 attacks, they also seized one ship and its crew and killed at least three seafarers.

“It is deplorable that innocent seafarers are being attacked while simply doing their jobs, crucial tasks that keep the world warm, fed and clothed,” the world’s major shipping associations said in a joint statement.

“These attacks must stop now. We call on states with influence in the region to protect our innocent seafarers and for a rapid de-escalation of the situation in the Red Sea.”

The Greek-owned coal ship Tutor, which was attacked by Yemeni Houthi militants in the Red Sea last week, has sunk, salvagers confirmed on Wednesday.

According to sources, the ship was hit by missiles and an explosives-laden remote-controlled boat.

International naval forces have been deployed to provide mainly defensive support to ships still transiting the Red Sea, but attacks have increased significantly.

Insurance industry sources said on Wednesday there were also growing concerns about the use of attack drone boats by the Houthis.

“They are harder to defend and potentially more deadly if they hit the waterline,” said an industry source.

“So far, rockets have mainly caused deck and superstructure damage (on ships).”

There have been 10 Houthi attacks so far in June, up from five in May, said Munro Anderson, head of operations at maritime war risk and insurance specialist Vessel Protect, part of Pen Underwriting.

“The first successful use of an unmanned surface ship represents a new challenge for commercial shipping within an already complex environment,” he added.

Insurance industry sources said additional premiums for war risks, paid when ships pass through the Red Sea, have fluctuated at almost 0.7% of a ship’s value in recent days, compared to around 1% earlier this year.

They added that with the sinking of a second ship and resulting losses, fares are likely to rise, adding hundreds of thousands of dollars to each voyage.

Ships should sail around southern Africa, which is the best way to protect seafarers, said Stephen Cotton, secretary general of the International Transport Workers’ Federation, the main seafarers’ union.

“We would also welcome good escorts and the protection of ships by naval forces, which would reduce the risk of ships being hit,” he added.

(Reporting by Jonathan Saul; Editing by Kirsten Donovan)

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