Houthi’s Threat on Sea Freight: Shade Light on Intertrade Between European Union and Southeast Countries

Abstract

This paper intends to analyze the threat that the Houthi’s insurgence has to the intertrade between the South Asia countries and the European Union (EU) by using sea freight. This research used a qualitative analysis approach and statistical data from bother intertrade published. The study reveals that alternatives routes caused by this crisis induced the European governments to apply Cape of Good Hope (COGH) as a safe channel for sea transport for goods from European countries in the South Asia markets and vice versa. This qualitative study applied content analysis as a tool to measure the impact of the Houthi’s threat in form of Geopolitical context, Insurance and mitigation, red sea shipping lanes and risk assessment were our indicators to analyze the impact of the Houthi’s threat on the sea freight between trade from Europe and Southeast Asia countries. With any luck, this study will help the logistics sector by serving as a roadmap for planning a more affordable alternative to regular transactions. According to this study, they adversely affect the intertrade’s outcomes. Study, Applicability, and Social Consequences: There are research gaps and warnings that should guide future investigations into supply chain hazards in many economic sectors.