It is not just Energy and it is not just Oil.  Human behavior is involved.
And stupidity will be dealt with accordingly.   

Main Menu

Shipping Choke Points & Piracy

Started by RE, Nov 21, 2023, 06:45 AM

Previous topic - Next topic

RE

This one is a small but possibly extremely important development in the world of the international shipping trade.

A few countries that are only semi stable sit at some of the most important points on the globe where many large container ships and oil tankers pass through daily.  Yemen on the Gulf of Aidan at the entrance to the Red Sea is one such country.  Their proximity allows Pirates operating relatively small boats and helicopters to be able to board these ships and take them hostage.  Even a small uptick in the popularity of doing this can play havoc with international shipping and Supply Chains.  They don't have to interdict many ships before it starts costing the shipping companies lots of extra insurance money and planning much longer/safer routes to avoid these places, if possible.  They also start having to add armed guards to their crews, and/or provide escort ships.

It tends to fall to the big naval military powers to police this bizness, basically the FSoA in most of the world and the Chinese in the South China Sea and Indian Ocean.  Besides the Red Sea and Suez Canal, it's worth watching the Panama Canal, the Dardenelles in Turkey at the entrance to the Black Sea, Denmark at the entrance to the Baltic Sea, the Straights of Magellan down below Argentina and the Cape of Good Hope by South Africa.  As the collapse action gets more global, watch for action around these places to start heating up.

https://www.reuters.com/world/middle-east/two-ships-divert-course-away-red-sea-area-after-vessel-seized-by-houthis-2023-11-20/

Two ships divert course away from Red Sea area after vessel seized by Houthis

RE