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

Companies transporting their products around the world are not ready to return to the Red Sea trade route in the wake of a Gaza ceasefire deal because of uncertainty over whether Yemen's Houthis will continue to attack shipping, industry executives said.

The leader of Yemen's Houthis said on Thursday that the Iran-aligned group would monitor the implementation of a ceasefire deal between Israel and Hamas aimed at ending the war in Gaza and continue its attacks on vessels or Israel if it is breached.

The Houthi militia has carried out more than 100 attacks on ships since November 2023 and has sunk two vessels, seized another and killed at least four seafarers in what they say is solidarity with Palestinians in Gaza.

The intensity of the attacks has disrupted global shipping and prompted route changes.

Executives from shipping, insurance and retail industries told Reuters the risks remained too high to resume voyages through the Bab al-Mandab strait in the Red Sea through which exports to Western markets from the Gulf and Asia must pass before entering the Suez Canal.

"There is no way I'm putting any of my merchandise on a boat that's going to go through the Red Sea for some time to come," said Jay Foreman, CEO of U.S.-based Basic Fun, which supplies toys to major U.S. retailers like Walmart and Amazon.com.

"I'll spend the extra money, and I'll send everything around the tip of Africa... It's just not worth taking a ch ..