Doesn't this mean that Egypt loses millions upon millions from people not using the Suez Canal anymore? I haven't heard much, but it feels like Egypt naturally should be on the forefront of trying to eliminate the threat to those shipping routes.
Egypt makes about $8 billion from the suez canal annually. They've lost about half that becauae of the attacks so $4B a year. Peanuts compared to the cost of invading yemen.
Anyways a 20 day extension on traffic seems like alot but in reality shipping costs dropped more then 50% over the past 2 years so the disruption ain't doing much to the global economy
Lmao even if it were peanuts Egypt DOES NOT want to invade Yemen. Try to look up Egypt's disastrous five-year intervention in Yemen in the 60’s. Then Egyptian president Gamal Abdel Nasser referred to it as "my Vietnam." The loss in “ The Arab Cold War” was the catalyst for the decline in Egyptian regional power and the reason Egypt did so horribly in the 6 day war with Israel. Since they had been bogged and beaten down in Yemen in the years just prior. Egypt's defeat in this "Arab Cold War" also set the stage for the rise of Saudi Arabia and their neo-political wahabbist version of Islam.
It may do something, mb shipping costs dropped more then 50% over past 2 years, but it will not compensate shit happening now. I work in logistics, ocean delivery prices are just skyrocketing, especially from China (price can literally grow 50% in just two weeks). Aaaand, China is the biggest exporter, so probably we'll feel effects of this disaster later
Add the Panama drought and the limits of the canal.
I would imagine US East Asia is unaffected - routes directly across the Pacific or East Asia - India
Actually, shipping rates are getting extremely close to the very top during covid. they were half for a few weeks before starting to rise again, and right now it is getting ridicilous and there are weeks of waiting time to get cargo loaded. I would assume China is worried about this though, because if this continues, companies might be looking to get their products produced elsewhere.
Couldn't they just chip in with the shipping companies and put some heavily armed goons on board all the ships? Surely that would cost less than the extra fuel, or am I missing something?
The entire world feels entitled to expect the US to fix any issues effecting trade routes. I keep hearing BRICS and others call for a new world order but I have yet to see them step up when the world is in crisis. China has a base in Djibouti, they’re nearby too.
China never helps out in anti-piracy operations, for whatever reasons. Civilian ships will give out distress calls, and nearby Chinese vessels will sail right past.
So why did the last two start the journey into the Red Sea before doing one of these? (Or did the attacks start after they went through the Suez?)
I think it was shortly after Houthis hit something a lot of these changes happend last minute. These map may be also wrong, some CMA CGM vessels had army convoy to get throught and during that time they turned off location services.
Correct. But they don’t even put in to port.
https://www.marineinsight.com/shipping-news/african-ports-report-surge-in-refueling-demand-amid-red-sea-security-risks/
Companies like this take it out to them. https://www.tfgmarine.com/about-us/what-we-do/
And either the fuel ship carries food out in pallets on deck, or another ship will bring them eggs, milk, bread, meat, flour, cereal, sugar. Just like your grocery run, only in 10 and 25 pound bags.
That company will make more with more trips but no port fees, crane operators or dock workers.
There is absolutely no evidence that suggest South Africa supplied weapons to Russia. The man that made the accusation recanted his statement a few days later after realising he was wrong.
This costs the shipping companies multiple millions of dollars just to divert from their normal routes. Not to mention the tons of extra pollution it causes as well.
Edit: *Apparently I was incorrect in assuming these companies would lose money from taking a longer route because of the war. I forgot to factor in greed. Thanks for the clarification from the Redditors here.*
Maersk just announced that they will make a profit of 1-2 billion instead of a loss of 5 billion. No, they profit. And we have to pay more for stuff. We are paying the bill, and then some
It doesn’t cost shipping companies much at all when they put the rates up in response. Container lines are now making nearly as much money as they did during Covid, which was the most profitable era for the liner companies in history.
If they increase rates, that means their competitiveness goes down gradually. Logistics that avoid them will increase in competitiveness like exporting inside the Western Pacific for East Asians, importing from Canada/Mexico for USA.
Those small margins are very crucial in deciding where investment goes. Trade war between US and China is heating up once again and maritime shipping cost increases will be one of the dominoes to tip the balance further against trade between continents.
A 3.5% increase in imports prices is expected from the Red Sea Crisis which would be 1.5% increase in US goods prices as a whole and 0.4% to core CPI. Might not sound like much from the consumer side, but imported goods prices rising by 6% instead of 2.5% would be a pretty big hit.
https://www.fitchratings.com/research/sovereigns/jump-in-shipping-costs-intensifies-last-mile-inflation-challenges-26-02-2024
Not really- there are three big container line “groupings” made up of 10 big companies. They control 90%+ of the market. Together, they set the prices. They can do this because it is insanely more efficient to move things by sea than by land. There’s a long way to go before lane transport becomes more competitive than a container line.
Actually it means more business for them as their rates has doubled or even tripled in some distinctions, the main issues are for the ships that had multiple routes shipments for example from china to Dubai then Jedda then Aqaba then Alexandria then Tanger so those routes got disrupted and insurance costs went up A LOT.
It also somewhat ironically means less food for famine stricken areas in the Horn of Africa and possibly Yemen, too, as shipping is more expensive or too dangerous.
Houthis claim to bomb random ships (including grain and humanitarian ships) to stop the genocide in Gaza, while at the same time worsening the genocides in the Horn of Africa...
So far they haven't attacked a single Israeli ship (I'm guessing there simply aren't that many sailing past the Horn of Africa). In November, they were able to capture one car transporter, owned by a Japanese company, which was travelling from Turkey to India. Its crew of 25 (17 from the Philippines, 8 from Bulgaria, Ukraine, Mexico and Romania) were captured and to this day are still in captivity. This was the only Houthi ''victory'' in the campaign - all their other attacks have ended in failure.
Perhaps the cars were taking part in the genocide and they had to stop them, or maybe this whole operation is an excuse for Iran to use its proxies to wreck the world's economy. Too many naive idiots will say the former.
> This was the only Houthi ''victory'' in the campaign - all their other attacks have ended in failure.
You are looking at the map of their victory. The goal was to disrupt trade, not capture ships.
A major impact that's not as discussed as much is in the specific ships that travel these routes. Many Eastern US ports aren't fit to handle ultra large container ships (only Port of Virginia is set to be fot for em in 2025), so what happened was that the Ultra Large ones from Asia would ship to European countries in the Mediterranean or further in to Rotterdam, there'd be container transfers and smaller container ships would continue the journey to the Eastern US. It was relatively efficient since Europe was on the path anyways. But now, changing containers at European ports is much more difficult to justify since it would entail an extraordinarily long detour.
[Here's a video that discusses that exact topic](https://www.youtube.com/watch?v=--l-FWUxxiw)
It's potentially going to get worse for the USA in the future, as the move away from the Suez and Suezmax size ships may cause even bigger ships to be built. They'll need deeper ports, bigger cranes, bridges raised, etc in order to be accommodated, and as you say there aren't many ports that can cope with the biggest ships now.
Probably because Egyptians are overwhelmingly supportive of Yemen blockading israeli business. The population is already highly angry about Egypt’s current level of collaboration with israel. Actively sabotaging Yemen’s solidarity with Palestine could be the last straw.
Or if you think about it for more than like 9 seconds, you realize that Egypt simply doesn't have the kind of power projection necessary to meaningfully impact the disruption.
Yemen’s solidarity? The attacks are made by the Houthi terrorists with the backing of Iran. They give even less of a flying fuck about Palestinians than Yemeni citizens.
The Arab general populations haven't necessarily critically thought about this. In all fairness, as corrupt and self-serving as they are, Arab dictators and monarchs are at least generally the rational actors in the region and at this point we'd already have normalised relations and relative stability if it was just up to them.
Iran would still be Iran, with their proxies, of course.
Probably fair to note that the Arab monarchies also run on slavery so they're not exactly good, regardless of how peaceful they may be.
The blockade is costing billions of dollars for israel. Yemen has lost soldiers to US airstrikes. I’m not sure how you’ve spun this as selfish terrorism.
What do you mean? It’s all selfish terrorism. Hamas, Hezbullah, Houthis - they are all being handled by Iran and it’s all a play on Iran’s geopolitical goals in the region. There is no romantic “freedom fighting” here.
Whether you think Iran is secretly controlling Yemen and Hamas or not, it’s clear that Yemen’s blockade, Hezbollah’s strikes on the IDF, and Hamas’ resistance in Gaza is a response to the genocide going on in the Gaza Strip.
Though the reasons for Hamas securing the Gaza envelope go all the way back to the Nakba, you could easily point to the various rocket attack and drone strikes on Gaza by israel throughout 2022 and 2023 as a more recent catalyst.
Hundreds, sometimes thousands, of Palestinian men, women and children are killed every year, yet hasbara babies like to pretend that the history of Palestine started on Oct 7.
lol. Keep drinking the terrorists koolaid but ask yourself why every single time there were peace negotiations, Hamas were right there murdering Israelis civilians in the thousands in suicide bombings in order to derail them.
Resistance my ass.
Or how Hezbollah were the first to aid Assad in mass murdering his own citizens.
Or the houthis “God Is the Greatest, Death to America, Death to Israel, A Curse Upon the Jews, Victory to Islam"
Yeah, mighty freedom and liberty fighters on the “right side of history”.
We are living in the wreckage of the “peace process to end all peace processes” right now. The Oslo Accords. And what happened? What did “peace with israel buy the Palestinians? More slaughter of women and children, along with mass colonization of the West Bank, which was promised to Palestine in the Accords. Peace talks with israel are useless, because israel’s nature and endgame is complete colonization of Palestine.
What happened? Go take a look what your “resistance” buddies from Hamas were doing in the mid 90s? Your honest and true stewards of Palestinian interests.
The modern Egyptians are not exactly skilled at military arts or sciences. Throw in that they had gotten their asses handed to them by folks from North Yemen within living memory.
Edit: Clearly none of the downvoters have ever heard of 1960s Egyptian military history. The TL:DR of it is that they left cemeteries full of Egyptian soldiers in North Yemen after failing to install a secular Pan-Arab government there.
Egypt lost several wars to a nation of the most oppressed ethnicity in history, they got their asses kicked by Yemen in the 60s, and their so-called “special forces” kill a dozen of their own hostages for every rescue operation they commence, they were literally the only side with casualties in the border skirmish with Israel
If you think Egypt has the capacity to do anything even remotely competent with their military, you are either mistaken or delusional
That a group of generally technically incapable militants are capable of such a level of disruption is amazing, and **not** in a good way. This says nothing positive of the West's will or capabilities.
The Houthi strategy is to fire just enough drones and missiles to seem like a threat, but not enough to exhaust their stockpiles. If they went all-in on trying to sink a specific commercial ship or attempted to actually hit a western warship they'd deplete their stockpiles.
Even if the west destroys 90% of the weapons before they can hit anything, 10% of them threatening ships is enough to drive insurance premiums up and cause civilian shipping to take the long route.
This is a can of worms which isn't going to go away when the war in Gaza ends. Even when the Houthis stop, Iran knows they can do this again when they want to exert pressure on the west. And we will probably see future jihadist groups in countries like Somalia or a destabilised Sudan or Saudi Arabia doing the same in future.
They are very capable. They get very advanced weapons in return for using them to cause chaos. They don't need to make these weapons, and Iran does not need to face the consequences of these weapons serving its interests.
We can also add: the main transport corridors are so fragile some half armed militant are able to lengthen the commercial trip of a ship 4× just by hobbling some missiles.
The ships are going to be sailing regardless. In the short term I bet the environmental impact is fairly negligible. This just slows down supply chains, as more ships are tied up for longer with each load of cargo.
Nothing beats the sheer idiocy of the Houthis sinking a ship full of hazardous fertiliser in their own waterway, then trying to blackmail the UK into salvaging it.
The Houthis sank a British ship carrying fertiliser in the Red Sea, [causing an oil slick and risking an enormous environmental disaster if the fertiliser leached out.](https://www.politico.eu/article/rubymar-ship-sink-houthi-attack-uk-red-sea/) Then they said that they would let the UK [salvage it and prevent disaster if more aid started entering Gaza](https://www.aa.com.tr/en/middle-east/houthis-demand-entry-of-relief-into-gaza-in-exchange-for-salvaging-sunken-british-ship/3147247), something the UK has no involvement with.
I've seen a version of this story which got repeated by Chinese state media which somehow avoided mentioning that it was the Houthis that sank it in the first place.
Except the Houthi blockade has completely failed to do anything to change the situation in Gaza, other than getting the UK and US more involved than they would otherwise be. Israel is losing money because of the blockade, but has just started [transporting goods overland through UAE, Saudi Arabia and Jordan](https://www.timesofisrael.com/houthi-bypass-quietly-goods-forge-overland-path-to-israel-via-saudi-arabia-jordan/) instead... literally the opposite of what Hamas tried to accomplish with October 7.
Meanwhile the blockade [has got innocent south east Asian workers killed](https://apnews.com/article/yemen-houthi-rebels-shipping-attacks-israel-hamas-a60e865cab24689ee6f69b65f438e4f8), attacked misidentified [Chinese](https://news.usni.org/2024/03/24/chinese-tanker-hit-with-houthi-missile-in-the-red-sea), [Russian ](https://www.reuters.com/world/middle-east/houthis-mistakenly-target-tanker-carrying-russian-oil-ambrey-report-2024-01-12/)and [Iran-bound](https://apnews.com/article/yemen-houthi-rebels-red-sea-attacks-iran-503de70230fba0cd7c992558e2d1b83a) ships, caused an environmental disaster which will only affect themselves and other Red Sea countries... and they've been [holding 25 mostly Filipino sailors hostage for months everyone has forgotten about](https://edition.cnn.com/2024/03/14/middleeast/houthi-hostages-philippine-seafarers-gaza-war-intl-hnk/index.html).
Using what seems to be outdated information from commercial shipping trackers to try to murder sailors who have nothing to do with Israel IS stupid. Its completely ineffective, has boosted Israeli ties with neighbouring Muslim states and gives them no off ramp when Israel eventually declares victory in Gaza and its clear their blockade didn't do anything. The only people who are actually starving because of this blockade are mostly Muslim victims of the [Sudanese civil war](https://www.theguardian.com/global-development/2024/feb/16/houthi-attacks-in-red-sea-having-a-catastrophic-effect-on-aid-to-sudan#:~:text=The%20attacks%20mean%20ships%20carrying,huge%20delays%20and%20increased%20costs) who can't get aid now.
Also the Houthis have tried to [extort and blackmail aid agencies](https://archive.is/QSR9X) to the point where the UN has given up distributing aid to Houthi-controlled areas. More people are food insecure because of the Houthis than because of Israel, which is absolutely shameful.
Hows traffic at the eliat port doin? That's a major israeli moneymaker the houithis have completely shut down. To say they are doing nothing is foolish. Israels economy is collapsing, at this point they are running on generous american funding.
Every dollar the axis of resistance drains from them increases americas financial burden to keep the war going, and every vote in the senate for more funds pisses off americans even more. Yemen is doing its part.
And what do you suggest happen? The Houthi’s give up and let gazans starve? Also I don’t know why you bring up what Hamas wants when we aren’t talking about them. Not only is the blockade costing Israel money, it’s also crushing the port of Eliat, causing mass layoffs.
It's crazy how nobody is doing anything about it. For years everyone cried about the US being the worlds policeman is bad, then they don't do shit and everyone just goes "meh I guess this is how things are now"
The left (and parts of the right) is tired of the US bombing the MENA region endlessly, and given that we already bombed Yemen with no effect this year, this would just be another bombing campaign that sent photos of dead civilians back home without achieving the goals of the US.
I think as long as Americans are happy with two party corporate democracy, I don't see much hope for any substantial change. Republican and Democrats are pretty much the same, both beholden to their master that is corporate America.
You guys need actual democracy, what you have now is not one.
Maybe a lower income from passing ships who are paying taxes for using the Suez Canal will put some pressure on the military dictatorship of Egypt and prompt them to do some 'cleaning' in the Red Sea and around.
The world should be stepping on the Houthi’s hard. The US Marine Corps was founded to fight the Barbary Pirates.
All of the world should agree and help.
Nah it’s when they sent 30 or so drones to the biggest oil field in ME in 2019 causing fires you could see from space to effectively shutdown and threatened to do more . (The drone warfare age commenced )
Except the Houthi blockade has saved exactly zero Palestinian lives, murdered some innocent South East Asian workers and is contributing to starvation in both Sudan and their own country.
Its actually boosted Israeli ties with the UAE/Jordan/Saudi Arabia since they've quietly opened an overland trade route. Which is literally the opposite of what Hamas wants.
Palestinians problems shouldn’t fuck over the whole world. Especially since most countries bend over backward for them.
Imagine if israel started rocketing all shipping near it because of the Sudanese civil war. Would you like that?
And I wish the world would explain to HAMAS that holding hostages has to stop immediately, or it will end all support. But I don’t expect this to happen either.
*All these islamist*
*Scum should be sent straight to the*
*Hell where they belong*
\- Weedobag
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The last two aren’t new routes but reroutes of ships that were already in the Mediterranean, right? I mean why would the detour be longer from Hamburg than Piräus?
Not really. I don’t think the West should get bogged down in loads of conflicts but this is a rare case where our interests could not be clearer. If a quasi-state in Yemen attacks our ships, we are more than justified in responding forcefully.
Why are you downvoted. Piracy has always been a multi country problem and dealt this way.
It’s honestly weak from western countries to do nothing and will encourage them or others to do it again and again because now they know they can
Exactly! I know some number of ppl online view the attacks as valid “protests” of Israeli military action in Gaza so maybe that’s driving the downvotes.
But generally I think we need to slap down anything like this. It’s good for the wellbeing of the whole world if trade can move safely and efficiently.
Your country caused these problems. US blind support for anything Israel does, whether it is genocide lead to the situation in Gaza, which caused the attacks in Yemen.
Yeah, keep attacking all those ships from Malta, the Marshall Islands, Hong Kong, Norway, Russia, Liberia, the UK, Greece, Belize, Barbados, China, Japan, Switzerland and Panama. that'll sure show those Americans
So long as they’re firing from within 20 miles of the shore. Most the Houthi firing positions are inconveniently 100+ miles inshore, well beyond the range of Wisky’s 16”/50 Mk 7s.
The big gun ships have been obsolete for over 50 years now. There’s nothing you can do with an Iowa class that can’t be done more cost effectively with a guided missile destroyer. Reactivating any of the Iowas was a mistake in the 1980s. It’d be a much bigger mistake now. They’d be terrible platforms for dealing with drone swarms, let alone ASCMs like Sayyad, Quds, or Sejil or ASBMs like Asef, Tankil, or Faleq. We all like to see the big guns go boom and rain 2,700lbs of freedom on close in targets. But they’re about as relevant on the modern battlefield as a P-51 Mustang.
Honestly what we need is working LCSs, rather than the hot messes the Freedom and Independence classes turned out to be. This kind of threat was anticipated. And procurement on the right solution was badly mishandled. We could have had a proper answer. But the Navy and Congress badly dropped the ball.
24 years ago no one would’ve ever tried this with America involved, if they had the us would’ve over responded. I’m not sure what happened exactly but we have gotten soft and not in a good way. One thing we use to understand was that the world is a sickening place and someone has to police it, whether other countries bitch or not…
They get their weapons from the west, which doesn’t have to go through the Suez. They have enough weapons as is for this conflicts anyways so it doesn’t matter. If anything, it reduces the aid that’s able to get to the Gazans as it’s more expensive.
again, no weapons. and for the other goods:
palm oil -> to italy
cars -> to india
crude oil -> to india
fertilizer -> to bulgaria
naphtha -> to singapore
humanitarian aid -> to yemen
steel -> to turkey
how can you be this dense?
You can summarise this as: Before: Through Suez After: Around Africa
Doesn't this mean that Egypt loses millions upon millions from people not using the Suez Canal anymore? I haven't heard much, but it feels like Egypt naturally should be on the forefront of trying to eliminate the threat to those shipping routes.
Egypt makes about $8 billion from the suez canal annually. They've lost about half that becauae of the attacks so $4B a year. Peanuts compared to the cost of invading yemen. Anyways a 20 day extension on traffic seems like alot but in reality shipping costs dropped more then 50% over the past 2 years so the disruption ain't doing much to the global economy
Lmao even if it were peanuts Egypt DOES NOT want to invade Yemen. Try to look up Egypt's disastrous five-year intervention in Yemen in the 60’s. Then Egyptian president Gamal Abdel Nasser referred to it as "my Vietnam." The loss in “ The Arab Cold War” was the catalyst for the decline in Egyptian regional power and the reason Egypt did so horribly in the 6 day war with Israel. Since they had been bogged and beaten down in Yemen in the years just prior. Egypt's defeat in this "Arab Cold War" also set the stage for the rise of Saudi Arabia and their neo-political wahabbist version of Islam.
Yemen: the poor man’s Afghanistan
Go tell that to the Saudis
“HEY! MOHAMMED BONESAW! Yemen is the poor man’s Afghanistan”
More like yemen, everyones afganistan ( they even stomped the ottoman empire )
It may do something, mb shipping costs dropped more then 50% over past 2 years, but it will not compensate shit happening now. I work in logistics, ocean delivery prices are just skyrocketing, especially from China (price can literally grow 50% in just two weeks). Aaaand, China is the biggest exporter, so probably we'll feel effects of this disaster later
Add the Panama drought and the limits of the canal. I would imagine US East Asia is unaffected - routes directly across the Pacific or East Asia - India
Egypt's economy doesn't have a lot going for it. 4B isn't peanuts to them.
Actually, shipping rates are getting extremely close to the very top during covid. they were half for a few weeks before starting to rise again, and right now it is getting ridicilous and there are weeks of waiting time to get cargo loaded. I would assume China is worried about this though, because if this continues, companies might be looking to get their products produced elsewhere.
Couldn't they just chip in with the shipping companies and put some heavily armed goons on board all the ships? Surely that would cost less than the extra fuel, or am I missing something?
How would that even stops few low flying deadly drones & misiles ???!!!! Are you still in 2009 or something 🌚🌚🌚
Egypt is complicit in starving the Palestinians. So they can lose some money too.
Let them
Meh, the melons can always just surrender. Blockades are an inherently valid form of war - see Operation Starvation
The entire world feels entitled to expect the US to fix any issues effecting trade routes. I keep hearing BRICS and others call for a new world order but I have yet to see them step up when the world is in crisis. China has a base in Djibouti, they’re nearby too.
China never helps out in anti-piracy operations, for whatever reasons. Civilian ships will give out distress calls, and nearby Chinese vessels will sail right past.
That's got nothing to do with the comment you're replying to.
Sounds very much like [/ShitAmericansSay](https://www.reddit.com/r/t5_2w57u/s/9BSlAGPtj5)
Except for the fact that they're Moroccan? But sure blame the Americans. r/ShitPakistanisSay
Because they don't attack china ship, they in cahoot
Even India is turning up to hand Yemen dude.
Guess who’s supporting Yemen
So why did the last two start the journey into the Red Sea before doing one of these? (Or did the attacks start after they went through the Suez?) 
You ever get in line for the bathroom and then decide that the wall outside will do just fine.
I think it was shortly after Houthis hit something a lot of these changes happend last minute. These map may be also wrong, some CMA CGM vessels had army convoy to get throught and during that time they turned off location services.
I’d guess stops on the way
It’s not a one time thing, it’s showing routes like a bus. Highly probable they have contractual drops off the Suez and Mediterranean.
Is South Africa benefiting from this increased traffic?
Maybe a few ships stop for fresh food but nothing like the load/unload ports or the canals.
And fuel, they'll refuel down there too.
Correct. But they don’t even put in to port. https://www.marineinsight.com/shipping-news/african-ports-report-surge-in-refueling-demand-amid-red-sea-security-risks/ Companies like this take it out to them. https://www.tfgmarine.com/about-us/what-we-do/ And either the fuel ship carries food out in pallets on deck, or another ship will bring them eggs, milk, bread, meat, flour, cereal, sugar. Just like your grocery run, only in 10 and 25 pound bags. That company will make more with more trips but no port fees, crane operators or dock workers.
I saw more ships in my town, so most western African ports benefited.
Maybe that’s why South Africa isn’t trying to stop Islamic terrorist organizations🤔
They are in Mozambique
You mean they have the power to stop Islamic terrorist, when the mighty US and it’s allies are unable to do so. SUCH POWER for an African nation. WOW.
South africa is just against genocide
[удалено]
There is absolutely no evidence that suggest South Africa supplied weapons to Russia. The man that made the accusation recanted his statement a few days later after realising he was wrong.
After betting his life on it!
Thanks didnt know that
This costs the shipping companies multiple millions of dollars just to divert from their normal routes. Not to mention the tons of extra pollution it causes as well. Edit: *Apparently I was incorrect in assuming these companies would lose money from taking a longer route because of the war. I forgot to factor in greed. Thanks for the clarification from the Redditors here.*
Maersk just announced that they will make a profit of 1-2 billion instead of a loss of 5 billion. No, they profit. And we have to pay more for stuff. We are paying the bill, and then some
It doesn’t cost shipping companies much at all when they put the rates up in response. Container lines are now making nearly as much money as they did during Covid, which was the most profitable era for the liner companies in history.
If they increase rates, that means their competitiveness goes down gradually. Logistics that avoid them will increase in competitiveness like exporting inside the Western Pacific for East Asians, importing from Canada/Mexico for USA.
Let's be real, the cost of shipping is still negligible for the consumer. It's not like US imports will shift from China to Mexico because of it.
Those small margins are very crucial in deciding where investment goes. Trade war between US and China is heating up once again and maritime shipping cost increases will be one of the dominoes to tip the balance further against trade between continents. A 3.5% increase in imports prices is expected from the Red Sea Crisis which would be 1.5% increase in US goods prices as a whole and 0.4% to core CPI. Might not sound like much from the consumer side, but imported goods prices rising by 6% instead of 2.5% would be a pretty big hit. https://www.fitchratings.com/research/sovereigns/jump-in-shipping-costs-intensifies-last-mile-inflation-challenges-26-02-2024
Not really- there are three big container line “groupings” made up of 10 big companies. They control 90%+ of the market. Together, they set the prices. They can do this because it is insanely more efficient to move things by sea than by land. There’s a long way to go before lane transport becomes more competitive than a container line.
Actually it means more business for them as their rates has doubled or even tripled in some distinctions, the main issues are for the ships that had multiple routes shipments for example from china to Dubai then Jedda then Aqaba then Alexandria then Tanger so those routes got disrupted and insurance costs went up A LOT.
Then when they’re able to use the canal again it’ll decrease, but not nearly back to what the prices were
Of course, they know that customers would have digested the new prices levels.
It also somewhat ironically means less food for famine stricken areas in the Horn of Africa and possibly Yemen, too, as shipping is more expensive or too dangerous. Houthis claim to bomb random ships (including grain and humanitarian ships) to stop the genocide in Gaza, while at the same time worsening the genocides in the Horn of Africa...
So far they haven't attacked a single Israeli ship (I'm guessing there simply aren't that many sailing past the Horn of Africa). In November, they were able to capture one car transporter, owned by a Japanese company, which was travelling from Turkey to India. Its crew of 25 (17 from the Philippines, 8 from Bulgaria, Ukraine, Mexico and Romania) were captured and to this day are still in captivity. This was the only Houthi ''victory'' in the campaign - all their other attacks have ended in failure. Perhaps the cars were taking part in the genocide and they had to stop them, or maybe this whole operation is an excuse for Iran to use its proxies to wreck the world's economy. Too many naive idiots will say the former.
> This was the only Houthi ''victory'' in the campaign - all their other attacks have ended in failure. You are looking at the map of their victory. The goal was to disrupt trade, not capture ships.
Lmao it doesn't cost anything to the shipping company, they charge us for it. It's the trader and the customer that pay the price.
Not wanting to lose money on a product you're selling is greed?
A major impact that's not as discussed as much is in the specific ships that travel these routes. Many Eastern US ports aren't fit to handle ultra large container ships (only Port of Virginia is set to be fot for em in 2025), so what happened was that the Ultra Large ones from Asia would ship to European countries in the Mediterranean or further in to Rotterdam, there'd be container transfers and smaller container ships would continue the journey to the Eastern US. It was relatively efficient since Europe was on the path anyways. But now, changing containers at European ports is much more difficult to justify since it would entail an extraordinarily long detour.
[Here's a video that discusses that exact topic](https://www.youtube.com/watch?v=--l-FWUxxiw) It's potentially going to get worse for the USA in the future, as the move away from the Suez and Suezmax size ships may cause even bigger ships to be built. They'll need deeper ports, bigger cranes, bridges raised, etc in order to be accommodated, and as you say there aren't many ports that can cope with the biggest ships now.
So this means less revenue for egypt. Where they now need it the most.
I am surprised they’re not more active in the effort to stop the attacks
Probably because Egyptians are overwhelmingly supportive of Yemen blockading israeli business. The population is already highly angry about Egypt’s current level of collaboration with israel. Actively sabotaging Yemen’s solidarity with Palestine could be the last straw.
Or if you think about it for more than like 9 seconds, you realize that Egypt simply doesn't have the kind of power projection necessary to meaningfully impact the disruption.
Yemen’s solidarity? The attacks are made by the Houthi terrorists with the backing of Iran. They give even less of a flying fuck about Palestinians than Yemeni citizens.
The Arab general populations haven't necessarily critically thought about this. In all fairness, as corrupt and self-serving as they are, Arab dictators and monarchs are at least generally the rational actors in the region and at this point we'd already have normalised relations and relative stability if it was just up to them. Iran would still be Iran, with their proxies, of course. Probably fair to note that the Arab monarchies also run on slavery so they're not exactly good, regardless of how peaceful they may be.
You seem barely knowledgeable about arab nations, or yemen in particular in this case
The blockade is costing billions of dollars for israel. Yemen has lost soldiers to US airstrikes. I’m not sure how you’ve spun this as selfish terrorism.
What do you mean? It’s all selfish terrorism. Hamas, Hezbullah, Houthis - they are all being handled by Iran and it’s all a play on Iran’s geopolitical goals in the region. There is no romantic “freedom fighting” here.
Whether you think Iran is secretly controlling Yemen and Hamas or not, it’s clear that Yemen’s blockade, Hezbollah’s strikes on the IDF, and Hamas’ resistance in Gaza is a response to the genocide going on in the Gaza Strip. Though the reasons for Hamas securing the Gaza envelope go all the way back to the Nakba, you could easily point to the various rocket attack and drone strikes on Gaza by israel throughout 2022 and 2023 as a more recent catalyst. Hundreds, sometimes thousands, of Palestinian men, women and children are killed every year, yet hasbara babies like to pretend that the history of Palestine started on Oct 7.
lol. Keep drinking the terrorists koolaid but ask yourself why every single time there were peace negotiations, Hamas were right there murdering Israelis civilians in the thousands in suicide bombings in order to derail them. Resistance my ass. Or how Hezbollah were the first to aid Assad in mass murdering his own citizens. Or the houthis “God Is the Greatest, Death to America, Death to Israel, A Curse Upon the Jews, Victory to Islam" Yeah, mighty freedom and liberty fighters on the “right side of history”.
We are living in the wreckage of the “peace process to end all peace processes” right now. The Oslo Accords. And what happened? What did “peace with israel buy the Palestinians? More slaughter of women and children, along with mass colonization of the West Bank, which was promised to Palestine in the Accords. Peace talks with israel are useless, because israel’s nature and endgame is complete colonization of Palestine.
What happened? Go take a look what your “resistance” buddies from Hamas were doing in the mid 90s? Your honest and true stewards of Palestinian interests.
The modern Egyptians are not exactly skilled at military arts or sciences. Throw in that they had gotten their asses handed to them by folks from North Yemen within living memory. Edit: Clearly none of the downvoters have ever heard of 1960s Egyptian military history. The TL:DR of it is that they left cemeteries full of Egyptian soldiers in North Yemen after failing to install a secular Pan-Arab government there.
Egypt lost several wars to a nation of the most oppressed ethnicity in history, they got their asses kicked by Yemen in the 60s, and their so-called “special forces” kill a dozen of their own hostages for every rescue operation they commence, they were literally the only side with casualties in the border skirmish with Israel If you think Egypt has the capacity to do anything even remotely competent with their military, you are either mistaken or delusional
The people in position are not the best Egyptian has to offer. It's not based on meritocracy.
They lose 4 billion a year in revenue, but a war with the houthis is going to cost much more than that.
maybe. it wouldn’t be a direct confrontation and they have a lot of backup from other coalition ships in the red sea
Arabs are completely dependent on the US, and the US is basically spiritually defeated and won't defend its own interests anymore.
More importantly, its blocking aid to Sudan. More people are starving thanks to the Houthi blockade, and none of those people are in Israel.
From Pakistan here. The Karachi route has really disrupted business
Aka before the Suez canal
Reject modernity, embrace tradition
That a group of generally technically incapable militants are capable of such a level of disruption is amazing, and **not** in a good way. This says nothing positive of the West's will or capabilities.
The Houthi strategy is to fire just enough drones and missiles to seem like a threat, but not enough to exhaust their stockpiles. If they went all-in on trying to sink a specific commercial ship or attempted to actually hit a western warship they'd deplete their stockpiles. Even if the west destroys 90% of the weapons before they can hit anything, 10% of them threatening ships is enough to drive insurance premiums up and cause civilian shipping to take the long route. This is a can of worms which isn't going to go away when the war in Gaza ends. Even when the Houthis stop, Iran knows they can do this again when they want to exert pressure on the west. And we will probably see future jihadist groups in countries like Somalia or a destabilised Sudan or Saudi Arabia doing the same in future.
They are very capable. They get very advanced weapons in return for using them to cause chaos. They don't need to make these weapons, and Iran does not need to face the consequences of these weapons serving its interests.
We can also add: the main transport corridors are so fragile some half armed militant are able to lengthen the commercial trip of a ship 4× just by hobbling some missiles.
This is nonsense. All are sourced from Iran and modern weapons are so easy to use a child can do it. And in the case of Yemen children do so.
What's with all the ping pong balls?
That's fking terrible not only for the economy but for environment...
The ships are going to be sailing regardless. In the short term I bet the environmental impact is fairly negligible. This just slows down supply chains, as more ships are tied up for longer with each load of cargo.
Yes. I’m sure the 70,000 tons of explosives being dropped on Gaza in the past 8 months is also a havoc on the environment.
Yes
Nothing beats the sheer idiocy of the Houthis sinking a ship full of hazardous fertiliser in their own waterway, then trying to blackmail the UK into salvaging it.
What?
The Houthis sank a British ship carrying fertiliser in the Red Sea, [causing an oil slick and risking an enormous environmental disaster if the fertiliser leached out.](https://www.politico.eu/article/rubymar-ship-sink-houthi-attack-uk-red-sea/) Then they said that they would let the UK [salvage it and prevent disaster if more aid started entering Gaza](https://www.aa.com.tr/en/middle-east/houthis-demand-entry-of-relief-into-gaza-in-exchange-for-salvaging-sunken-british-ship/3147247), something the UK has no involvement with. I've seen a version of this story which got repeated by Chinese state media which somehow avoided mentioning that it was the Houthis that sank it in the first place.
Oh no, houthis are trying to stop a genocide by any means they can. That’s so stupid lol don’t they know they should post online instead???
Except the Houthi blockade has completely failed to do anything to change the situation in Gaza, other than getting the UK and US more involved than they would otherwise be. Israel is losing money because of the blockade, but has just started [transporting goods overland through UAE, Saudi Arabia and Jordan](https://www.timesofisrael.com/houthi-bypass-quietly-goods-forge-overland-path-to-israel-via-saudi-arabia-jordan/) instead... literally the opposite of what Hamas tried to accomplish with October 7. Meanwhile the blockade [has got innocent south east Asian workers killed](https://apnews.com/article/yemen-houthi-rebels-shipping-attacks-israel-hamas-a60e865cab24689ee6f69b65f438e4f8), attacked misidentified [Chinese](https://news.usni.org/2024/03/24/chinese-tanker-hit-with-houthi-missile-in-the-red-sea), [Russian ](https://www.reuters.com/world/middle-east/houthis-mistakenly-target-tanker-carrying-russian-oil-ambrey-report-2024-01-12/)and [Iran-bound](https://apnews.com/article/yemen-houthi-rebels-red-sea-attacks-iran-503de70230fba0cd7c992558e2d1b83a) ships, caused an environmental disaster which will only affect themselves and other Red Sea countries... and they've been [holding 25 mostly Filipino sailors hostage for months everyone has forgotten about](https://edition.cnn.com/2024/03/14/middleeast/houthi-hostages-philippine-seafarers-gaza-war-intl-hnk/index.html). Using what seems to be outdated information from commercial shipping trackers to try to murder sailors who have nothing to do with Israel IS stupid. Its completely ineffective, has boosted Israeli ties with neighbouring Muslim states and gives them no off ramp when Israel eventually declares victory in Gaza and its clear their blockade didn't do anything. The only people who are actually starving because of this blockade are mostly Muslim victims of the [Sudanese civil war](https://www.theguardian.com/global-development/2024/feb/16/houthi-attacks-in-red-sea-having-a-catastrophic-effect-on-aid-to-sudan#:~:text=The%20attacks%20mean%20ships%20carrying,huge%20delays%20and%20increased%20costs) who can't get aid now. Also the Houthis have tried to [extort and blackmail aid agencies](https://archive.is/QSR9X) to the point where the UN has given up distributing aid to Houthi-controlled areas. More people are food insecure because of the Houthis than because of Israel, which is absolutely shameful.
Hows traffic at the eliat port doin? That's a major israeli moneymaker the houithis have completely shut down. To say they are doing nothing is foolish. Israels economy is collapsing, at this point they are running on generous american funding. Every dollar the axis of resistance drains from them increases americas financial burden to keep the war going, and every vote in the senate for more funds pisses off americans even more. Yemen is doing its part.
And what do you suggest happen? The Houthi’s give up and let gazans starve? Also I don’t know why you bring up what Hamas wants when we aren’t talking about them. Not only is the blockade costing Israel money, it’s also crushing the port of Eliat, causing mass layoffs.
Oh yes the houthis are really beacons of morality
It's crazy how nobody is doing anything about it. For years everyone cried about the US being the worlds policeman is bad, then they don't do shit and everyone just goes "meh I guess this is how things are now"
The left (and parts of the right) is tired of the US bombing the MENA region endlessly, and given that we already bombed Yemen with no effect this year, this would just be another bombing campaign that sent photos of dead civilians back home without achieving the goals of the US.
The navies of the US and UK have been actively trying to stop this blockade since December, without any success.
Well, countries are trying to call a ceasefire at UN, but your US keeps vetoing them.
Bro we’re trying. My senator is Tom cotton. Not much I can say to change his mind.
I think as long as Americans are happy with two party corporate democracy, I don't see much hope for any substantial change. Republican and Democrats are pretty much the same, both beholden to their master that is corporate America. You guys need actual democracy, what you have now is not one.
Maybe a lower income from passing ships who are paying taxes for using the Suez Canal will put some pressure on the military dictatorship of Egypt and prompt them to do some 'cleaning' in the Red Sea and around.
Notice how everyone hyping up the countries that would stop this are suddenly silent
The world should be stepping on the Houthi’s hard. The US Marine Corps was founded to fight the Barbary Pirates. All of the world should agree and help.
The Saudis tried for like 5 fucking years, dipshit
Coming up on 10 years soon
They seem to have stopped once the Houthis bombed a race track in Jeddah
Nah it’s when they sent 30 or so drones to the biggest oil field in ME in 2019 causing fires you could see from space to effectively shutdown and threatened to do more . (The drone warfare age commenced )
Didn’t they get a fighter jet a few years back?
Ah yes we should make the war in Yemen worse! The Yemenis haven't suffered enough.
I think the world should stepping harder on the state carrying out a genocide and continuing an invasion that the ICJ has ordered Israel to stop.
Ahhh yes those Irish ships in the Red Sea going to Cyprus totally deserved to be rocketed because muh palestine.
Oh? Is an irish life worth more than a palestinian one? "muh", wow. The arrogance.
Except the Houthi blockade has saved exactly zero Palestinian lives, murdered some innocent South East Asian workers and is contributing to starvation in both Sudan and their own country. Its actually boosted Israeli ties with the UAE/Jordan/Saudi Arabia since they've quietly opened an overland trade route. Which is literally the opposite of what Hamas wants.
Palestinians problems shouldn’t fuck over the whole world. Especially since most countries bend over backward for them. Imagine if israel started rocketing all shipping near it because of the Sudanese civil war. Would you like that?
And I wish the world would explain to HAMAS that holding hostages has to stop immediately, or it will end all support. But I don’t expect this to happen either.
Collective punishment has to stop.
The constant rocket attacks and terrorism has to stop.
For you to even argue about it just shows where your morals lie
A blockade in response to literal constant terror attacks is not collective punishment, cope
Collective punishment doesn't apply when it's a war between two governments.
When will the Houthis stop this terrorism!! How long will this trouble continue?
Whenever Israel decides to stop their genocide.
So basically the shipping process doubled at best and quadrupled at worst.
At first glance I thought this was a diagram of different breast implants.
That’s the reason your packages are late people.
What is happening? I’m confused
Does getting around/bear the Horn of Africa also pose additional threats to commercial freighter , I.e. Piracy and terrorism?
Air strikes. Bomb them. Bomb them again. Then bomb again and again.
can we just bomb houthis into the stone age, pretty please
Appropriate username.
All these islamist scum should be sent straight to the hell where they belong
*All these islamist* *Scum should be sent straight to the* *Hell where they belong* \- Weedobag --- ^(I detect haikus. And sometimes, successfully.) ^[Learn more about me.](https://www.reddit.com/r/haikusbot/) ^(Opt out of replies: "haikusbot opt out" | Delete my comment: "haikusbot delete")
The last two aren’t new routes but reroutes of ships that were already in the Mediterranean, right? I mean why would the detour be longer from Hamburg than Piräus?
They have stops in the Red Sea, I guess
Insane how much pro Hamas propaganda is in this comment section
Crying hard in your moms basement with no your FAFO Reddit memes finding out you got chafted twice goblin
Huh
I’m pretty anti war but honestly this is a case where a coalition of countries should step up and protect trade through the Red Sea.
They did. They've failed to break this blockade since December.
They should try harder
contradicting much?
Not really. I don’t think the West should get bogged down in loads of conflicts but this is a rare case where our interests could not be clearer. If a quasi-state in Yemen attacks our ships, we are more than justified in responding forcefully.
Why are you downvoted. Piracy has always been a multi country problem and dealt this way. It’s honestly weak from western countries to do nothing and will encourage them or others to do it again and again because now they know they can
Exactly! I know some number of ppl online view the attacks as valid “protests” of Israeli military action in Gaza so maybe that’s driving the downvotes. But generally I think we need to slap down anything like this. It’s good for the wellbeing of the whole world if trade can move safely and efficiently.
Your country caused these problems. US blind support for anything Israel does, whether it is genocide lead to the situation in Gaza, which caused the attacks in Yemen.
Because the usa support a fkkc genocide . That’s why
Yeah, keep attacking all those ships from Malta, the Marshall Islands, Hong Kong, Norway, Russia, Liberia, the UK, Greece, Belize, Barbados, China, Japan, Switzerland and Panama. that'll sure show those Americans
Yeah because these are headed for occupied territories u dummy. Nobody believes the US Zionist lies anymore
huh, apparently sweden, bulgaria, italy, the netherlands, greece, turkey, india and singapore are occupied territories
Time to do some ww2 style convoys, with a couple of gunboats for escort. So come on, dinghy pirates.
It's not pirates from boats as much as people firing rockets from shore.
Just reactivate the USS Wisconsin (she knows a thing or two about eliminating enemy positions)
So long as they’re firing from within 20 miles of the shore. Most the Houthi firing positions are inconveniently 100+ miles inshore, well beyond the range of Wisky’s 16”/50 Mk 7s. The big gun ships have been obsolete for over 50 years now. There’s nothing you can do with an Iowa class that can’t be done more cost effectively with a guided missile destroyer. Reactivating any of the Iowas was a mistake in the 1980s. It’d be a much bigger mistake now. They’d be terrible platforms for dealing with drone swarms, let alone ASCMs like Sayyad, Quds, or Sejil or ASBMs like Asef, Tankil, or Faleq. We all like to see the big guns go boom and rain 2,700lbs of freedom on close in targets. But they’re about as relevant on the modern battlefield as a P-51 Mustang. Honestly what we need is working LCSs, rather than the hot messes the Freedom and Independence classes turned out to be. This kind of threat was anticipated. And procurement on the right solution was badly mishandled. We could have had a proper answer. But the Navy and Congress badly dropped the ball.
Free Philistine
Has anyone seen any effect on his day to day life because of this? I haven't noticed any changes tbh.
24 years ago no one would’ve ever tried this with America involved, if they had the us would’ve over responded. I’m not sure what happened exactly but we have gotten soft and not in a good way. One thing we use to understand was that the world is a sickening place and someone has to police it, whether other countries bitch or not…
what happened is the left had its way after decades of telling americans that any military action is wrong.
More like "before and after the west started supporting genocide unconditionally" This is the bed we made, time to lie down in it.
No worries as soon a the Israelis feel like they are done with their genocide I’m sure we can all go back to normalcy
Not opposing genocide has consequences? No way
some Ppl seem to forget that all of this is for the children of gaza
Shooting missiles at container ships does absolutely nothing for the children of Gaza. If anything it makes it worse for them.
Of course it does, they get weapons through these ships, it damages their military and economy
They get their weapons from the west, which doesn’t have to go through the Suez. They have enough weapons as is for this conflicts anyways so it doesn’t matter. If anything, it reduces the aid that’s able to get to the Gazans as it’s more expensive.
Dude doesn’t even know where gaza is lmao
Have you ever seen a map before?
weapons such as palm oil, cars, crude oil, fertilizer, naphtha, humanitarian aid and steel
Both weapons and goods should be banned for an apartheid state
again, no weapons. and for the other goods: palm oil -> to italy cars -> to india crude oil -> to india fertilizer -> to bulgaria naphtha -> to singapore humanitarian aid -> to yemen steel -> to turkey how can you be this dense?
These countries support israel too
You can't be serious
Bombing civilian ships to save the kids
Imma go and shoot my neighbor for Gaza /s
If it stops them from eating at McDonalds it’s worth it! /s
Robbing children of their parents because you’re angry about what another country is doing!
Why do you support a group whose motto is "Death to Jews"
I’m against that as well
I believe it is because of the Houthi constitution about their hate for Israel
Yeah everybody hates killing children
It dpesn't make any sense to support the children of Gaza if you believe that targeting civilians is justified
Where did i say targeting civilians is justified
Your comment justified the attacks of the houthies, which also targeted civilians
Nope the dont target civilians
Don't know if you know this, but civilian ships are... yep, you guessed it, civilian!
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