Taps Coogan – January 5th, 2024
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Almost two years to the day since the peak in global shipping rates in the winter of 2021/2022, shipping rates are rocketing higher once again – though this time limited largely to Asia-Europe routes that pass through the Red Sea and Suez Canal. Via The Daily Shot:
Shipping costs from Asia to Europe are surging as vessels are forced to avoid the Red Sea. pic.twitter.com/phmuwCfF0O
— (((The Daily Shot))) (@SoberLook) January 5, 2024
This is, of course, due to the Houthi (read Iran) attacks on the commercial shipping in the area.
Beyond the obvious concerns this will raise vis-a-vis inflation in Europe, it highlights the continued reliance of Europe on the US military. Of the 25+ attacks, there are only two reported instances of an interception or response to a requests for aid coming from a non-US ship (one French and one UK). That is despite the Suez Canal being comparatively ‘unimportant’ to US shipping routes but existentially important to Europe. Egypt, which is losing millions in transit fees, also seems content to pawn off responsibility for securing the waters, as does regional power and Houthi-nemesis Saudi Arabia.
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