A drone boat captured from Yemen's Houthi rebels. AP
A drone boat captured from Yemen's Houthi rebels. AP
A drone boat captured from Yemen's Houthi rebels. AP
A drone boat captured from Yemen's Houthi rebels. AP

Houthi drone boat attack shows growing use of tactic


Robert Tollast
  • English
  • Arabic

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Houthi militias in Yemen hit a commercial ship in the Red Sea with an explosive drone boat on Wednesday, the first successful attack of its kind since the group began its blockade of the waterway in November.

The ship, a bulk carrier called Tutor, is apparently out of control and taking on water, having been catastrophically damaged, according to the UK Maritime Trade Organisation.

Unmanned drone boats are small motor boats that travel on the surface, or slightly below, remotely piloted and driven into ships to detonate their cargo of explosives.

This has several advantages over typical Houthi drone or ballistic missile attacks on ships, which cause damage or start fires on top of the ship's hull, but do not necessarily sink it if the waterline is unaffected. The Houthis also possess anti-ship cruise missiles optimised to sink warships, but they are more expensive than the drone boats.

A missile hits the M/V True Confidence in March. Photo: US Central Command
A missile hits the M/V True Confidence in March. Photo: US Central Command

The Houthis said on Wednesday they had carried out a “military operation targeting the Tutor ship in the Red Sea, using a naval drone, aerial drones and ballistic missiles”.

The Houthis have used the boats on numerous occasions during the conflict, but so far not successfully. The group pioneered the combat use of the unmanned weapon when they struck a Saudi vessel in 2017.

In the Second World War, Imperial Japan also used a similar tactic, launching Shinyo, or “sea quake”, boats at US ships, although these were manned, since radio control of vessels was in its infancy. Insurgents and terror groups including Al Qaeda, Sri Lanka’s Tamil Tigers and Hamas have also used the weapon, but also in its manned form.

So common is the tactic against commercial ships in the Red Sea – transit point for about 12 per cent of global trade – that the UKMTO – a government body – has issued instructions to crews expecting their use. UKMTO uses military jargon, calling them Water Borne Improvised Explosive Devices.

“WBIED attacks may result in a breach of the ship’s hull. The use of the safe muster point is recommended before entering a citadel located below the waterline. If a WBIED is anticipated, the time to react is very short,” UKMTO said.

How can boat-bombs be stopped?

The US and UK, and a number of other countries, have so far successfully intercepted the drones, as well as bombing their launching sites in waves of air strikes.

But once launched, the vessels are particularly dangerous. Attacking by day, they can at first appear in the distance as crewed motor boats, UKMTO warns. This is a significant threat to commercial ships, which lack military-grade optical devices, such as the Mark 20 Electro-Optical Sensor System available on US warships, which allows crews to identify small boats at long range, day or night.

They are also a serious threat to naval forces, as evidenced by their extensive use in the Black Sea in the Ukraine war.

Ukraine has invested heavily in the weapons, which have sunk numerous Russian warships.

Countermeasures are still in development – especially for when the drone boats attack at night – and in some cases, Russia has resorted to using netting around ports.

In choppy waters, drone boats that are low in the waterline are even harder to spot, both visually and with radar, which struggles to create a clear picture as beams encounter the “clutter” of moving seas.

Other innovations being worked on by Ukraine include drone boats capable of firing rockets, missiles and even carrying anti-aircraft systems.

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Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

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Sector: Sustainability
Total funding: Self funded
Number of employees: 4

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Updated: June 13, 2024, 10:10 AM