Star Bulk Carriers Corp. Shifts Route Strategy After Houthi Attacks

The Athens-based, NASDAQ-listed shipping company Star Bulk Carriers Corp. has found itself in the crosshairs of Houthi militant attacks twice, compelling a change in operational strategy. The company, which specializes in the maritime transport of bulk commodities, recently experienced a harrowing situation with one of its vessels, the Star Iris, when it was attacked by Houthi forces while transporting a corn shipment from Brazil. Despite the aggression, the Star Iris sustained only minor damages and reported no injuries among its crew. The severity of these incidents has prompted Star Bulk to reassess its shipping routes, specifically avoiding the Suez Canal—a critical maritime passage jeopardized by the ongoing conflict in Yemen.

Houthi Attacks on the Red Sea Route

The Houthi faction, known for its Iranian backing, has increased its presence in the Bab al-Mandeb strait, a strategic point near the southern entrance to the Red Sea. On February 12, the Star Iris, which flies the flag of the Marshall Islands, became a target while en route to Bandar Iman Khomeini, Iran. The incident, detailed by the U.S. Central Command, involved two missiles fired by the Houthis; fortunately, the vessel emerged largely unscathed.

Corporate Response and Strategic Shift

Star Bulk's decision to alter its shipping routes arose after assessing the risks presented by repeated Houthi attacks. This significant shift was announced by CEO Petros Pappas during a conference call with analysts, following an earnings report. Pappas highlighted past scenarios where the company was legally unable to redirect vessels away from the Suez Canal due to charter party agreements. Now, with safety as a priority and the experience of these near-misses, Star Bulk has declared it will no longer risk the Suez route to prevent further encounters with Houthi operations. Pappas also touched on the broader impact of such incidents, suggesting potential disruptions in supply trades.

Shipping, Security, Strategy