South Korea’s Seoul Economic Daily has revealed a growing trend among shipping companies to avoid maritime routes to and from Saudi Arabia, as they reassess risks and face rising insurance premiums. 

The development comes amid the Yemeni Armed Forces’ announcement that they are imposing a maritime blockade on Saudi-linked vessels in the Bab el-Mandeb Strait.

According to the newspaper, reports have recorded a notable increase in cases of vessels being unable to access Saudi ports, alongside a steady rise in insurance premiums for routes bound for the kingdom. 

The developments came days after the Yemeni Armed Forces announced, on July 20, that they were imposing a maritime blockade on Saudi-linked vessels in the strategic Bab el-Mandeb Strait.

Speaking to the Seoul Economic Daily, an official at a shipping company confirmed that firms are showing clear reluctance to send their vessels toward Saudi Arabia, noting that difficulties now affect both the dispatch of ships from the kingdom and the entry of vessels into it.

Meanwhile, the head of an export company in the South Korean city of Incheon told the newspaper that “finding a cargo ship bound for Saudi Arabia has become nearly impossible.” 

The chairman of the Korea Plastics Industry Cooperative also revealed that companies may receive orders and complete production, only to find themselves unable to ship their goods because vessels bound for the kingdom are unavailable.

South Korea’s Ministry of SMEs and Startups confirmed that actual logistical damage has occurred along Saudi-related routes through the Red Sea, threatening supply chains and disrupting trade between the two countries.