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Red Sea trade route will remain too risky even after Gaza ceasefire deal, industry executives say

  • The Red Sea trade route remains avoided by shipping companies despite a ceasefire between Israel and Hamas, due to ongoing risks from the Houthi militia's attacks.
  • The Houthi militia has conducted over 100 attacks on ships since November 2023, claiming solidarity with Palestinians in Gaza.
  • Shipping and insurance executives report that high war risk insurance premiums and safety concerns deter companies from resuming operations in the Red Sea.
  • Industry leaders express skepticism regarding the Houthi militia's pledge to halt attacks, indicating a cautious approach to resuming Red Sea trade.
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