Abstract: This study assesses the impact of Houthi ship attacks in the Red Sea on Tanzania’s shipping sector. The Red Sea, a critical maritime corridor linking Asia, Africa, and Europe, has faced rising insecurity due to Houthi attacks, which have disrupted global shipping routes and increased operational costs. Tanzania, being heavily dependent on maritime trade through the Port of Dar es Salaam, has been indirectly affected by these disruptions. The study adopted a mixed-methods approach with a sample of 96 respondents drawn from shipping companies, port authorities, logistics firms, and traders. Quantitative data were analyzed using descriptive statistics and presented in tables and graphs, while qualitative insights were obtained through interviews with key stakeholders. The findings revealed that Tanzanian shipping companies are incurring higher operational costs due to increased freight charges, elevated insurance premiums, and additional fuel consumption from rerouted voyages. Trade scheduling has also been negatively affected, with longer transit times causing port congestion and delays in cargo clearance. These disruptions have collectively reduced trade volumes, increased costs of imports and exports, and negatively affected the profitability of logistics operators and port stakeholders. The study concludes that Tanzania’s shipping sector is highly vulnerable to external geopolitical shocks emanating from the Red Sea crisis. To address these challenges, the study recommends strengthening regional and international maritime security cooperation, modernizing Tanzanian port infrastructure, diversifying trade corridors, and developing cost-sharing mechanisms between shippers and government institutions. These measures will enhance the resilience of Tanzania’s shipping sector and ensure continuity of maritime trade in the face of global disruptions.