WORLD SHIPPING: The world pays and stays silent - WHY?
It may be a bit pushed out of the headlines but what is happening in the Red Sea is dramatic and the most significant impact on the global economy of the war in Gaza.
A senior official at an American consulting company explains that in view of the fact that 30% of global container traffic normally passes through the Suez Canal, the Red Sea crisis has a huge impact on global supply chains.
The Houthi attacks on cargo ships resulted in an almost fivefold increase in the cost of shipping between Asia and Europe. This is estimated to fuel global inflation by adding up to 0.7% to the cost of the global economy's "core commodities".
The best alternative routes add to the voyages thousands of kilometers, over 10 days (between Asia and Europe) and hundreds of thousands of dollars in fuel costs for each such journey at sea. "Given the global nature of our economy, few companies or industries are immune to the impact.
The increased cost of raw materials and supplies, longer delivery times, production delays and distribution challenges will affect the entire manufacturing sector long after the crisis is over," he wrote.
The world seems to have come to terms with this reality...
It may be a bit pushed out of the headlines but what is happening in the Red Sea is dramatic and the most significant impact on the global economy of the war in Gaza.
A senior official at an American consulting company explains that in view of the fact that 30% of global container traffic normally passes through the Suez Canal, the Red Sea crisis has a huge impact on global supply chains.
The Houthi attacks on cargo ships resulted in an almost fivefold increase in the cost of shipping between Asia and Europe. This is estimated to fuel global inflation by adding up to 0.7% to the cost of the global economy's "core commodities".
The best alternative routes add to the voyages thousands of kilometers, over 10 days (between Asia and Europe) and hundreds of thousands of dollars in fuel costs for each such journey at sea. "Given the global nature of our economy, few companies or industries are immune to the impact.
The increased cost of raw materials and supplies, longer delivery times, production delays and distribution challenges will affect the entire manufacturing sector long after the crisis is over," he wrote.
The world seems to have come to terms with this reality...
WORLD SHIPPING: The world pays and stays silent - WHY?
It may be a bit pushed out of the headlines but what is happening in the Red Sea is dramatic and the most significant impact on the global economy of the war in Gaza.
A senior official at an American consulting company explains that in view of the fact that 30% of global container traffic normally passes through the Suez Canal, the Red Sea crisis has a huge impact on global supply chains.
The Houthi attacks on cargo ships resulted in an almost fivefold increase in the cost of shipping between Asia and Europe. This is estimated to fuel global inflation by adding up to 0.7% to the cost of the global economy's "core commodities".
The best alternative routes add to the voyages thousands of kilometers, over 10 days (between Asia and Europe) and hundreds of thousands of dollars in fuel costs for each such journey at sea. "Given the global nature of our economy, few companies or industries are immune to the impact.
The increased cost of raw materials and supplies, longer delivery times, production delays and distribution challenges will affect the entire manufacturing sector long after the crisis is over," he wrote.
The world seems to have come to terms with this reality...
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