On November 19, 2023, the Galaxy Leader — a Bahamas-flagged, Japanese-operated (NYK Line), Israeli beneficially-owned 189-meter pure car carrier — was seized by Houthi forces operating from helicopters in the southern Red Sea, near the Bab-el-Mandeb strait. Over the following weeks, the Houthis conducted a sustained campaign of missile and drone attacks against commercial shipping transiting the Red Sea, framed as a response to the ongoing Israel-Hamas conflict in Gaza. Within roughly three months, the operational consequences had propagated through the entire Asia-Europe supply chain: container vessels operated by major liners began re-routing around the Cape of Good Hope (adding approximately 10-15 days each direction), Asia-Europe spot freight rates more than doubled from late-2023 levels, oil transit through Bab-el-Mandeb dropped from approximately 8.

7 million barrels per day in 2023 to approximately 4 million barrels per day in 2024 (per EIA data), and Suez Canal transit revenues for Egypt fell sharply (Egyptian authorities reported fiscal year 2023-24 revenues fell approximately 23%, from roughly $9.4 billion to $7.2 billion; the more dramatic ~50% reduction applies to calendar-year 2024 oil-tanker volumes specifically rather than to total canal revenue).