The situation in the Red Sea is grim. Most shipping is rerouted. A time lapse video shows the disruption. Big shipping surcharges in play.
Red Sea Headlines Starting December 18
The Wall Street Journal reports Maersk Pauses Transit Through Red Sea Until Further Notice After Attack on Ship
Danish shipping giant A.P. Moeller-Maersk MAERSK.B 6.38%increase; green up pointing triangle said it will pause all transit through the Red Sea and Gulf of Aden until further notice following the attack on its vessel Maersk Hangzhou on Dec. 30.
Maersk Hangzhou, a Singapore-flagged container vessel that operates between Europe and Asia, came under missile attack on Saturday evening, the U.S. said. Four boats later approached the vessel, shot at it and attempted to board it, according to Moller-Maersk.
Early Sunday, helicopters from nearby U.S. Navy vessels responded to fire coming from boats controlled by Houthis, an Iranian-backed rebel group in Yemen, sinking three of them and killing the crews, the U.S. said. The fourth boat fled. The Houthis later claimed the attack and said they lost 10 fighters in the encounter.
Earlier Tuesday, Hapag-Lloyd said it will continue to avoid Red Sea transits and reroute its vessels around the Cape of Good Hope until at least Jan. 9 in response to the recent attacks.
Time Lapse
Further Notice
The Last Mile
The “last mile” to 2% inflation got harder. — Container lines most affected by geopolitical unrest in Red Sea, with surcharges as high as $2,000 per teu announced to compensate for the cost of transiting around Cape of Good Hope
The map data may not be entirely correct because vessels are likely switching off their AIS anywhere near the danger zone.
Explain all the ships around Africa.
If you go onto one of those marine traffic or vessel finder websites you will see that there is still plenty of traffic going through the Red Sea, just maybe different traffic dominating. The images shown of ship maps are misleading and inaccurate.
Explain all the ships around Africa that were not there a few weeks ago.
The inevitable inflation that results will be handle in one or both ways:
Either way, it is NO problem and the news will ensure that we know that in the KOW-TOW MAINSTREAM NEWS WAY.
I can’t vouch for the validity but I read recently that the change in shipping routes results in adding 500,000 barrels of oil to daily world demand.
There are those people who believe that the US military can fight one hot war in the Ukraine, a second with Iran and the Houthis,, a third with China over Taiwan, and a fourth with Venezuela over its expansionary tactics, all at the same time. good luck with that…..
Agreed. The logistics of supporting a military force are massive. I read somewhere that three logistics personnel are required to support one fighting troop…mechanics, cooks, truck drivers, medical staff, etc, etc. It’s like installing a city that has to move along with the advancing troops. The stuff that had to be transported across the English Channel after the D-Day invasion boggles the imagination.
LNG tankers use their cargo as fuel sometimes, to reduce costs. There also increasing numbers of other types of fuel for ships, such as Ammonia.
It’s oversimplistic to think of ships just going longer distances, you have to factor in ports and port capacity, because ships need bunkering (of sewage, garbage, as well as fuel) and replenishment (food, fresh water, tools/machinery), and crew changes.
Some ports specialise in some things more than others.
This is also another reason against the notion of a Chinese invasion of Taiwan. The cost to China of a sudden and substantial drop in shipping traffic in and out of China, would be catastrophic for them. They might have their own fleets, but what if their own fleets need escorting too, the logistics of war are more than just sending troops and projectiles across to a target. If anything, the supply side and economics of war are the deciding factor, which is why China has a base on the Red Sea too.
Jerry Lewis.telethon for the Houthis. They are bad mofos.
LOL
The US should target and take out Houthis missile launch sites. Simple but Biden shivering in his boots, as usual. Always indecisive and too little too late.
Mobile launchers are hard to hit. The west is going to learn a lesson. Your time is over.
That’s what drones are for.
The Houthis have already shown they can take down US drones.
The problem is American ship naval power is 1950’s technology, and a large target for a Salvo of Houthis rockets,drones etc.
The same for the Abraham & Challenger tanks,that were withdrawn to the rear in Ukraine as they would have burnt on the Ukrainian steps,just like the Leopard 2A’s were useless when up against modern technology.
The F16’s will follow.
Ford and Eisenhower are gone. Nasrallah might open a second front. Sinwar will
drink champagne in his underground harem. His first Jewish baby will be born in June.
Europe and China are the Hooties biggest victims. If NATO & the Iranian navy clash the flow of oil might be cut. If China invades Taiwan the flow of ships from the Indian ocean to China might be cut. The 40 years of the globalists era in reverse. Recession
is likely. Inflation might reverse to minus 2% or worse.
WRONG! The biggest victim is Egypt as this will cost about $100 million each week in lost Suez transit fees.
The Egyptian economy is in dire straits with the black market rate for the USD now about 53 Egyptian pounds compared to the official rate of under 31. Inflation is 40%, there are shortages of many basic commodities and immense pressure to devalue.
Also a massive government debt both local and international that consumes over 60% of government revenue. Unless the Arab countries continue to lend tens of billions then Egypt will default. Or they might have to accept Gazan population in exchange for debt relief and Houthi actions are increasing the odds of this happening with their damage to the Egyptian economy.
If they were charging $100Million a week, it was time to re-negotiate those fees anyway.
Everyone is a victim because global trade networks connect almost everyone, but even Egyptians are ambivalent about Iran, even though Iran’s actions are directly affecting them, as Egypt has to deal with the refugees.
You talkin’ “Hootie and the Blowfish?”
That guy switched to Cowboy songs, so the music is different now.
Quote “The “last mile” to 2% inflation got harder.”
I think that is a misleading statement. 2% inflation implies a 2% increase this past year, plus 2% more next year and 2% the year after, etc. A built-in compounding problem typical of unrestrained fiscal and monetary policy.
In contract, the Houthi blockade of the south end of the Red Sea is a one time event. A one-time increase now, with no additional increases next year or the year after.
I think that regular folks would vote a huge YES to ZERO INFLATION and then DEFLATIONARY action thereafter, bringing Gasolene back down to 1969 levels and rents the same.
OK, I took too big a hit on that last doobie.
A systematic wiping out of all jihadi military assets in the area is just around the corner.
Don’t you mean American military assets?
oh but, Jihadis used to be your friends ….US’ friends …when it suited the US ….you not gonna wipe out your ‘friends’ (again) , are you ?
There have been numerous sightings of the Flying Dutchman this week too.
This is pure political theater Ansar Allah is only targeting Israeli owned or Israeli bound shipping.
They have no rights to be targeting anyone.
They have the right of justice for the women and children of Palestine.against the fake.jewish converts.
By what law or logic? You DO advocate that laws be followed, yes?
What is the cargo for those shipments?
Is this good for Climate Change? Are the Houthis in cahoots with Greta, Kerry & Gore?
Despite the advances in technology, geography and strategic chokepoints still matter as much as ever.
Even satellite communications require ground stations all over the planet in places most Americans can’t find on a map but are dependent on daily nonetheless.
Quite. If you wanted to beat China in a war over Taiwan, you would blokade the shipping route to Vladivostock between Japan and Korea, and the shipping route past the Natuna Islands and Singapore. The CCP is acutely aware of it’s vulnerabilities.
That’s why they build the belt and road
I think China would simply sink the US navy if the US tried to impose a blockade. Then what?
And what good would it do if we could find it on a map lol. What? Are we going to fly right there on southwest airlines and do something about it?
A picture is worth a thousand words. Knowing where something is on a map promotes better understanding.