Sunday’s hijacking of a cargo ship linked to an Israeli tycoon but operated by a Japanese shipping company has not only highlighted the vulnerability of global supply chains but also exacerbated concerns that the Israel-Hamas conflict could escalate into a regional crisis.
Chartered by Nippon Yusen KK, also known as NYK Line, the Galaxy Leader was seized in the southern Red Sea by Iran-linked Houthi fighters from Yemen as it was traveling from Turkey to India.
The group seized the vehicle carrier, whose 25-person international crew included no Israelis or Japanese, using a helicopter that dropped several heavily armed fighters aboard the ship.
While this was not the first ship to be hijacked by the group, the move marked the first time the Houthis had displayed such capabilities and tactics to capture a commercial vessel, particularly at this crucial chokepoint for international shipping.
The Houthis said they took control of the ship, which wasn’t carrying any cargo, over its connection to Israel. They also warned they would continue to target vessels linked to or owned by Israelis until the end of the military campaign against Hamas militants in Gaza.
Tokyo has condemned the hijacking and said it is working with Israel as well as directly contacting the Houthis to secure the release of the ship and crew, although it is unclear how long negotiations will take as the group’s demands appear to be mainly political.
What’s clear though is that the Houthis’ actions pose a new threat to international maritime trade, as an average of 50 ships pass through the Suez Canal into the Red Sea each day.
Who exactly are the Houthis?
The Houthis are a predominantly Zaydi Shiite movement that has established control over most of Yemen’s north and population centers as a result of a civil war against a Sunni-majority government that has been raging since 2014 and plunged the country into an intractable political and economic crisis.
Despite being initially dismissed as unsophisticated tribal fighters, Houthi rebels took control of the country’s capital, Sana’a, that same year, seizing the presidential palace a few months later.
To restore the government, a Saudi-led coalition began in March 2015 a campaign of economic isolation and airstrikes against the rebels. The Houthis have struck back, however, using missiles and “suicide” drones against key targets in Saudi Arabia and the United Arab Emirates.
“The Houthis have become an increasingly high-skilled militia over the past decade,” said Tobias Borck, a researcher at the London-based Royal United Services Institute.
Believed to have between 20,000 and 50,000 armed fighters, the group has also claimed responsibility for several attacks in the Red Sea and the Gulf of Oman. It is widely believed that Tehran has played a key role in arming, training and funding the Houthis, accusations that Iran has rejected.
Ryan Bohl, a Middle East analyst at U.S.-based geopolitics and intelligence firm RANE, said the group has learned to fight in a variety of ways, inheriting officers and soldiers from the Yemeni military and learning valuable tactics from fighting the remnants of the central government.
“But they were also likely trained by Iran, their chief ally and sponsor, which has regularly carried out naval harassment tactics in the Persian Gulf (similar to the Galaxy Leader hijack) as part of the wider U.S.-Iran confrontation,” he said.
Fighting between the Houthis and the Saudi-led coalition largely subsidized this year amid a U.N.-led peace push, but the conflict could resume should the Gaza conflict spill over into other parts of the Middle East.
Why are the Houthis targeting Israel?
One of the hallmarks of the movement has been their opposition to both the United States and Israel.
“Their opposition to Israel is really in their DNA,” said Fabian Hinz, a defense analyst at the International Institute for Strategic Studies, pointing out that the Houthis’ slogan calls for the “death” of both Israel and America.
Under the administration of former U.S. President Donald Trump, the movement was added to Washington's list of terrorist organizations. But this was revoked in 2021 by U.S. President Joe Biden, whose government is now reviewing whether to put the group back on that list.
Part of an Iran-backed "axis of resistance," the Houthis have rallied behind the Palestinians since the latest Israel-Hamas conflict erupted in October. As part of their “resistance,” they have launched missiles and drones into Israel, although these have been intercepted by the latter's advanced air-defense systems.
While the group claims these actions are meant to demonstrate solidarity with the Palestinians, experts see them rather as intended to increase the Houthis’ political influence and a way to assert their legitimacy in Yemen.
“The Houthis are keen to burnish their credentials,” Borck said. “It is less about genuinely fighting Israel, and more about the perceived propaganda value of being seen to be doing something against Israel.“
Given the limited efficacy of their aerial attacks, the Houthis now appear to have switched their focus to “soft targets” linked to Israel, including unprotected commercial vessels such as the Galaxy Leader.
“It is much riskier for them to attack U.S. or Israeli military assets, so targeting civilian transport ships appears to be the next best option to them,” said Hinz, warning that these moves may trigger a regional escalation as the Gaza war continues — a situation that many countries, including the United States and Japan, are looking to prevent.
How will this impact shipping in the region?
Tom O’Sullivan, a Tokyo-based energy consultant at Mathyos Advisory, said the worsening security situation is not only driving up shipping insurance costs but also making shipping companies consider much longer alternative routes, including around the Cape of Good Hope in Africa, which could add over a week to travel time.
Already, two commercial ships connected to the same British shipping group as the Galaxy Leader have reportedly diverted course away from the Red Sea.
That said, the Houthis’ warning doesn’t seem to be meant for all vessels navigating these waters, at least for now.
“The risk is not specific to ships operated by Asian countries,” Borck said. Instead, the Houthis are more likely to target ships they perceive to be somehow tied to Israel.
“From the Houthis’ perspective, it doesn't matter that the ship is Japan-operated. They regard it as an 'Israeli' ship,” he said.
While this poses a risk to supply chains, Japanese energy imports are unlikely to be affected as tankers transporting crude oil and liquefied natural gas do not often sail through the Suez Canal.
What can be done to better protect shipping?
Most Houthi-related hijackings and attacks have taken place at or near the Bab el-Mandeb Strait. A viable solution to the problem, experts say, would be to increase ship escorts around that area.
As of late October, the U.S. Navy has deployed five warships to boost protection. Other nations could also work together to increase their naval presence in the region, which includes forces from Japan, China, South Korea and Europe assigned to tackle the piracy problem in the Gulf of Aden.
Some of these forces could potentially be redirected to escort shipping in the Red Sea or set up naval zone defenses that would prevent Houthi forces from carrying out attacks, said maritime security expert John Bradford.
More immediate options would also include increasing aerial patrols to detect and potentially intercept hijacking attempts.
A key challenge for the international community has been figuring out how to protect shipping without widening the Gaza war.
However, Bradford warned that meeting this challenge is becoming increasingly difficult since by attacking Israel, and now also a ship with limited ties to the country, the Houthis “seem intent to make such an escalation a reality.”
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.