Carnival Corporation, on Friday (January 26), joined the growing cohort of companies expressing concerns over potential operational impacts following attacks on ships in the Red Sea by the Iran-backed Houthis.
In a regulatory filing, Carnival stated they believed that the instability in the Red Sea region currently affecting shipping could potentially affect their operational results.
The company's USA-listed shares (CCL) experienced a ~2% decline in morning trade.
The attacks, reportedly carried out by the Houthis in support of Palestinians in Gaza, have led to increased shipping and insurance costs by disrupting a critical trade route linking Asia and Europe.
Despite military strikes by American and British forces on Houthi targets in Yemen earlier this month, attacks on shipping by the group persist. The Houthis control a significant portion of Yemen, including the capital Sanaa and much of the country's Red Sea coast, near the Bab al-Mandab strait.
In January, RCG/Royal Caribbean Group announced the cancellation of two voyages to circumvent the Red Sea.
Likewise, Swiss-Italian operator MSC Cruises revealed last week the cancellation of 3 scheduled trips in April, originating from South Africa and the United Arab Emirates, bound for Europe.