For our Ethiopian coffee lovers, we want to update you on why obtaining Ethiopian coffee has become increasingly challenging in the past several months. Since October 2023, attacks on shipping vessels in the Red Sea by Houthi militia from Yemen have significantly disrupted the usual shipping routes. These attacks have made the Red Sea a perilous passage, causing shipping companies to reroute their vessels around the southern tip of Africa, increasing travel distances, reducing shipping capacity, and raising costs. For these reasons, Pacific Crest's orders of Ethiopian coffee have continuously been delayed, and their date of arrival is still unknown.
The Impact on Ethiopian Coffee Exports
This situation has impacted Ethiopian coffee exports, as well as coffee exports from Kenya and Yemen. Djibouti, the main port for Ethiopian coffee, has seen a decrease in shipping services from major companies - Maersk and MSC - who previously offered regular sailings from Djibouti to the US. However, due to the heightened risks, Maersk temporarily halted its service and now operates on a reduced schedule, while MSC continues with a limited and varied schedule. This has led to a shortage of available containers and delayed shipments, causing significant backlogs and increased costs for shipping coffee.
The Red Sea and Global Trade
The Red Sea is a vital passage for global trade, as it allows ships to transit between Asia and Europe via the Suez Canal, bypassing the much longer route around the southern tip of Africa. Approximately 12% of global trade and 30% of global container traffic pass through the Red Sea, making it a strategic and economically significant area.
More About the Conflict...
The Houthi militia, also known as Ansar Allah, is a political and armed movement based in northern Yemen. The group, primarily composed of Zaidi Shia Muslims, originated in the 1990s and has since evolved into a significant political and military force in Yemen. They gained substantial power in 2014-2015 when they took control of the Yemeni capital, Sanaa, and forced the internationally recognized government into exile.
The ongoing conflict in the Red Sea primarily stems from ongoing hostilities involving the Houthi militia. In the last year, the Houthis have increasingly targeted commercial shipping vessels in the region, using drones, missiles, and even helicopters to capture ships and crews. These attacks have created significant risks for vessels passing through the Bab-el-Mandeb strait, a critical chokepoint connecting the Red Sea to the Gulf of Aden.
In response to the heightened risk of attacks, many shipping companies have altered their routes to avoid the Red Sea, opting instead to sail around Africa. This diversion increases shipping times and costs, impacting the global supply chain, particularly for goods originating from or destined for regions reliant on the Red Sea route, such as Ethiopia.
The conflict has prompted military responses, including actions by the United States and its allies, aimed at countering the Houthi attacks and securing safe passage for commercial vessels. Despite these efforts, the threat remains significant, and the security situation is expected to continue affecting maritime operations in the region for the foreseeable future.
Moving Forward
As the situation in the Red Sea and related export logistics continue to evolve, we will continue making efforts to secure coffee from the region when possible. Thank you for understanding.