Major shipping player Maersk, the world's 5th largest shipping company, has recently halted all Red Sea voyages due to mounting concerns over Yemeni threats. This strategic decision comes at a critical juncture as the Panama Canal grapples with drought, causing commercial vessels to experience delays.
The impact is profound, considering the Red Sea facilitates approximately 22% of international container trade and 10% of the global oil trade. Maersk's decision to suspend Red Sea voyages is particularly noteworthy as they command 15.3% of the global container ship fleet, securing the second spot after the Mediterranean Shipping Company (MSC) with a 18.6% market share.
Furthermore, the global shipping industry is navigating rough waters with rising insurance premiums for container ships passing through geopolitical chokepoints like the Suez Canal. These increased costs are inevitably transferred to consumers, who are poised to hold their governments accountable for the ensuing surge in prices.
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Lol jokes on them because all our ports are fucked, we've got a serious backlog and we're up to our arse in containers going nowhere, even South African companies are willing to drive up to Mozambique to import or export so you can imagine what a shit show it is here, ports are literally crumbling and the SOE running into the ground is still waiting for a bail out
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So the recession will set in right in time...
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Now we just need a resurgence of piracy in the Malacca Straight.
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Yep. The bottlenecks are closing.
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Doesn't bode well for those of us hoping WWIII might be avoided
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Sounds cynical but imo the Near East is something like a remote war the Crown can switch on and off like they need it (credit pump etc). Quatar plays a crucial role here. Concerning WW3: Doesn't look too good, indeed.
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Maersk is the 2nd largest shipping company
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How did you measure it? Tonnage, market cap or transport value?
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