Djibouti economy strained by Bab al-Mandab tensions

Djibouti is facing increasing economic repercussions due to security tensions in the Bab el-Mandeb Strait, one of the world's most important maritime passages. Despite security concerns, maritime traffic continues, albeit with caution. Authorities indicate that the current situation remains relatively stable, with ships still passing through, though some shipping companies are exercising greater caution. Closing or disrupting the strait could elevate transportation costs, delay supply chains, and impose additional burdens on Djibouti's ports due to higher fuel, insurance, and labor expenses. Additionally, rerouting ships around Africa would add approximately 14 days to voyage durations, slowing global trade and increasing costs. Djibouti emphasizes that the stability of this waterway is essential to safeguard international trade movement and rejects imposing charges on ships without compensation. The country affirms that any unilateral decisions by Yemen or others that threaten maritime security could jeopardize navigation safety and place further burdens on economies dependent on this key passage.

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