Yemen's Houthi movement declared an immediate naval blockade of Saudi Arabia on July 20, adding a new pressure point on the country's foreign trade at a time when regional shipping routes are already facing significant disruption. The group subsequently warned international shipping companies against loading or unloading cargo at Saudi ports, saying vessels with commercial ties to the country could be targeted. While no direct disruption to steel supplies has yet been reported, the announcement has raised concerns about incoming production materials, steel supply and the availability of delivery services.
The first tangible response came from the energy transportation segment. On July 21, three tankers carrying Saudi oil to China and India changed course in the Red Sea and headed north toward the Suez Canal rather than continuing through the Bab al-Mandeb Strait. Although the ships were not carrying steel, their rerouting shows that shipowners have already begun to reassess routes and port calls involving Saudi Arabia. Similar caution could subsequently extend to ships carrying dry bulk cargo, general cargo and steel products
For Saudi manufacturers, the main concern is whether this reassessment will reduce the number of ships willing to handle cargo associated with the kingdom's steel trade. Longer shipping schedules and higher freight and war insurance costs may increase the cost of imported materials and
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