Houthi Red Sea Shipping Attacks — 2023-2024
Massive supply-chain disruption, zero S&P 500 impact
Houthi rebels attacked commercial shipping in the Red Sea starting November 2023. Container rates tripled. Red Sea transit volumes fell nearly 58%. The S&P 500 rallied +10.2% in Q1 2024 — its best first quarter since 2019.
What history says
Editorial commentary written by ALAN analysts. Figures cited below are analyst-authored context — they are not derived from the chart above and may reflect different windows or sources.
Asia-Europe spot rates surged from $1,500 to over $5,500 per FEU. The S&P 500 crossed 5,000 for the first time on February 8, mid-crisis.
Inventory buffers and diversified sourcing absorbed the shock before it reached consumers.
An advisor who moved to cash on Red Sea headlines in December 2023 would have missed a +10% quarter.
Freight-rate spikes are not earnings events until they reach consumers — container costs tripled while the index posted its best first quarter in years. Should shipping-lane disruption persist, the review belongs with logistics-sensitive and thin-margin importers among your holdings, not with overall equity exposure.