Yemen's Houthis are considering charging commercial ships to pass through the Bab el-Mandeb strait, a move that could fundamentally alter risk and cost calculations for ocean carriers using the Red Sea route, according to regional officials cited by Reuters.
The Iran-aligned movement is examining fees for most vessels using the strategic gateway linking the Red Sea and Gulf of Aden, according to regional officials who spoke to Reuters. No timetable has been established, and the Houthis have not publicly confirmed the proposal. The plan would transform their campaign of missile and drone attacks into a revenue-generating system controlling access to the southern Red Sea.
Potential Toll System and Exemptions
The proposed authority to administer the charges was reportedly discussed when Houthi officials travelled to Iran in July for the funeral of supreme leader Ali Khamenei. They returned to Yemen accompanied by Iranian advisers who are helping develop the scheme. The objective is to normalise collecting fees on international waterways while increasing pressure on Washington, according to officials briefed on the talks. Chinese-controlled vessels could be exempted, reflecting Beijing's separate negotiations to secure safe passage for tankers carrying Saudi crude.
Comparison with Iran's Strait of Hormuz Scheme
The Houthi proposal follows Iran's efforts to impose mandatory insurance and maritime-service payments on ships transiting the Strait of Hormuz. Washington this week described that arrangement as an IRGC-backed extortion scheme and sanctioned two companies allegedly involved. The parallel underscores a broader Iranian strategy to monetise chokepoint control.
| Aspect | Houthi Proposal (Red Sea) | Iran's Hormuz Scheme |
|---|---|---|
| Mechanism | Fees for most vessels using Bab el-Mandeb | Mandatory insurance and maritime-service payments |
| Status | Under consideration, not publicly confirmed | Described by US as IRGC-backed extortion; sanctions imposed |
| Exemptions | Chinese-controlled vessels possibly exempted | Not specified in source |
| Objective | Normalize fees, pressure Washington | Impose payments on transiting ships |
Escalation Context
The Houthis declared a maritime blockade against Saudi Arabia on July 20 and have since claimed attacks on several Saudi-linked tankers. The group says the campaign is retaliation for the kingdom's involvement in Yemen's long-running conflict. The proposed toll system would add a financial dimension to an already volatile security environment for shipping in the Red Sea.
Implications for Shippers and Operators
For freight forwarders and ocean carriers, the potential toll represents a new variable in voyage cost calculations for Red Sea transits. If implemented, carriers may face either higher fees or longer alternative routes around the Cape of Good Hope. The exemption for Chinese-controlled vessels could create a two-tier system, affecting competitive dynamics on the Asia-Europe and Middle East trades. Insurance premiums and security costs may rise further as the Houthis formalise their control over the waterway.
Watch List
- Official confirmation or denial of the toll scheme by Houthi leadership.
- Further guidance from Iranian advisers on the proposed authority's structure and fee levels.
- Reaction from Washington, including potential sanctions or military responses.
- Whether additional attacks on Saudi-linked tankers precede or follow the toll announcement.
- Carrier and shipper decisions on rerouting versus paying tolls if implemented.
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