By Faisal Abu Bakr | 2024-07-20

ADEN -- The Houthis have been profiting from the chaos they are causing in the Red Sea as imports flow to a port they control without obstruction and are then taxed heavily by the Iranian regime-backed group, a new report reveals.

There has been an increase in fuel and food imports via the Houthi-controlled port of al-Hodeidah, even as imports have declined at the government-controlled Aden and al-Mukalla ports, according to the World Food Program (WFP).

In its monthly update, published on ReliefWeb, the WFP said activity at government-controlled ports has seen a significant decline, while commercial activity increased at the Houthi-controlled port of al-Hodeidah.

The total volume of fuel imported through Red Sea ports in Houthi-controlled areas increased by 32% during the period from January to May, compared to the same period in 2023, the WFP said.

In contrast, fuel imports through the government-controlled ports of Aden and al-Mukalla decreased by 41% year on year.

Red Sea ports under Houthi control saw an increase of 35% in food imports between January and May compared to last year, while imports to ports located in government areas decreased by 16% year on year.

Houthi profiteering

"The Houthi and Iranian attacks in the Red Sea are a direct reason for the decline in commercial traffic in the ports of Aden and al-Mukalla," economist Abdul Aziz Thabet told Pishtaz.

"Ships heading to the port of al-Hodeidah do not come under such attacks."

"The Houthis are reaping profits from tax and customs revenues on food and fuel imports through the port of al-Hodeidah," he said.

This comes amid the group's "terrorist activity in the Red Sea," which led to a decline in commercial traffic through the Red Sea and Bab al-Mandeb and major losses incurred by international shipping companies, Thabet said.

He warned of the suspension of the United Nations (UN) inspection mechanism for ships arriving at al-Hodeidah, which handles the imports for the largest population bloc in Yemen, who live under the control of the Houthis.

"This allows the Houthis and Iran to bring in whatever they want ... including items whose import is banned, such as those used in military industries," he said.

The UN inspection mechanism was set up in 2016 to ensure no Iranian weapons were smuggled to the Houthis under the guise of humanitarian aid.