1/Traffic in the #RedSea is piling up between Sudan and Jeddah waiting for military action.
A few days ago I discussed an op-ed in @LloydsList that called for the use of "gunboat diplomacy."
youtu.be
A few days ago I discussed an op-ed in @LloydsList that called for the use of "gunboat diplomacy."
youtu.be
2/We have now seen nearly all the major container lines and major oil tanker firms announce they will not transit the #BabelMandeb
LIST: Shipping Giants Pause Red Sea Voyages as Attacks Mount
gcaptain.com
LIST: Shipping Giants Pause Red Sea Voyages as Attacks Mount
gcaptain.com
3/This means that the #Houthi are currently strangling the most significant trade route on the planet.
The Houthi are not the recognized government of Yemen, yet this non-state actor has completely disrupted the global #supplychain.
The Houthi are not the recognized government of Yemen, yet this non-state actor has completely disrupted the global #supplychain.
5/This is a time when the container lines have excess carrying capacity and declining freight rates, meaning lower profits heading into 2024.
xeneta.com
xeneta.com
6/The tanker companies are dealing with reduced cargoes due to the cutback in production and a finite carrying capacity.
OPEC+ Agrees to Deeper Supply Cuts
gcaptain.com
OPEC+ Agrees to Deeper Supply Cuts
gcaptain.com
7/Even US-flagged ships that receive subsidies from @US_TRANSCOM @DOTMARAD, and contracted to carry @DeptofDefense cargo are refusing to transit the Bab el-Mandeb, even with US escorts for fear that their ships may be damaged, captured or sunk.
8/This arguement by @MaerskLineLtd and @ARCships raises serious questions about the ability of #sealift in a potential peer-to-peer conflict in the Pacific if they are concerned about the #Houthi. This will alter any warplans set by @INDOPACOM @MSCSealift @US_TRANSCOM.
10/We witnessed the impact of #supplychain disruptions during COVID off the ports of LA/Long Beach.
I have studied the interaction of military and commercial shipping for years and the warning has been laid out by the likes of @brucebrookings.
I have studied the interaction of military and commercial shipping for years and the warning has been laid out by the likes of @brucebrookings.
@brucebrookings 11/Now the ocean carriers, with power similar to the British East India Company of old, are mandating actions by the world governments and their military to make the seas safe.
But the damage is already done as rates, stock prices & inflation rise.
Who is the PIRATE?
But the damage is already done as rates, stock prices & inflation rise.
Who is the PIRATE?
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