Houthis declare naval blockade against Saudi ports, opening a 2nd front in the fertilizer shipping crisis

Yemen’s Iran-backed Houthi movement declared a naval blockade against Saudi Arabian ports on July 20, adding a second maritime disruption to the global fertilizer supply chain alongside the ongoing Strait of Hormuz crisis, according to a UANI shipping analysis published on August 19.

The Houthi Saudi blockade targeting the Red Sea has already prompted some tankers to reroute, although compliance is not universal. Rising insecurity in the Red Sea has increased insurance costs and transit times for vessels moving fertilizer, petrochemicals, and other bulk cargo between the Gulf region and global markets.

The Red Sea is a key transit corridor for fertilizer shipments from North Africa and the Middle East to Europe and the Americas. Morocco’s OCP, the world’s largest phosphate exporter, ships through the Red Sea and Suez Canal to reach European buyers. Egypt’s NCIC and other producers at Mediterranean and Red Sea ports also rely on the route.

The Houthi move compounds the Strait of Hormuz blockade, which has already cut off more than 30% of global urea exports and roughly half of globally traded sulfur. Together, the two disruptions threaten to isolate the Middle East and North African fertilizer-producing region from global markets at both its eastern and western exits. A CoBank report published on August 13 warned that the resulting supply constraints will keep fertilizer prices elevated through 2028.

Source: UANI