Recent allegations from a United Nations report suggesting Yemen’s Houthi rebels collect an estimated $180 million monthly from shipping companies for safe passage through the Red Sea are being met with skepticism from maritime law experts. Stephen Askins, a specialist in maritime law with Tatham & Co, voiced doubts over the feasibility of such substantial payments, describing the report’s figures as “unlikely” and logistically challenging.
According to the UN Panel of Experts on Yemen, the funds allegedly flow through informal networks linked to Houthi leaders, utilizing the hawala money-transfer system. The report asserts that these fees represent a significant source of funding for the Houthis as they intensify threats to shipping in the Red Sea, amid alleged alliances with Iran’s Revolutionary Guard, Hezbollah, and groups like al-Shabaab. This expanding network, the panel claims, provides the Houthis with enhanced financial and logistical coordination to threaten global maritime trade.
Askins, however, questioned the plausibility of the financial scope detailed in the UN findings. He noted that the estimated monthly sum closely resembles what was paid annually to Somali pirates at the height of piracy off Somalia’s coast. “This was done legally, with insurance industry backing,” he explained, underscoring the vast difference in scale. “If anything like this sort of money was being paid by mainstream shipping, I would know,” he stated, adding that shipowners already face high costs when rerouting around the Red Sea but are unlikely to risk penalties by engaging with a proscribed group without insurance coverage.
Drawing on his own experiences with hawala payments, Askins emphasized the logistical difficulties of handling such large sums discreetly. “Cash is heavy and bulky. Moving $10 million in cash is a serious endeavor, weighing roughly 100 kg,” he said. Askins observed that such high-volume, regular transactions through hawala systems would likely raise regulatory alarms, particularly in areas with rigorous financial oversight.
The report’s claims have nonetheless raised serious concerns within the shipping community. Some companies are already rerouting vessels around the Cape of Good Hope to avoid Red Sea passage, though at significant cost. For others, the choice to avoid paying alleged bribes in Houthi-controlled waters has left ships idle, impacting charters and increasing expenses.
Despite skepticism from Askins and others in the industry, the UN maintains that the Houthis have developed an extensive, organized network to exert control over strategic Red Sea routes. U.S. officials are also reportedly monitoring reports of potential Houthi collaborations with groups like al-Shabaab, which would align with Iran’s established proxy strategy to counter Western influence. Direct evidence remains limited, but the prospect of deeper alliances within the Red Sea’s maritime sphere continues to be closely watched by international security agencies.
