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Where does most global shipping go to and from?
China.
Who isn't affected by the closure of the strait at all?
China.
Good work Trump, America First!
If that is the explanation, it sure isn’t made clear by this shit article.
China depends on Iranian oil, which is why Iran tried the partial blockade to let friendly ships through. That forced the US to try and enforce a full blockade to prevent China from being less affected than everyone else.
It’s absolutely epic that Iran found a way for their adversary to enforce the very blockade which their adversary took issue with. Like… holy hell. That’s some boss level shit
It doesn't take a genius to win at chess when your opponent is playing checkers and eating the pieces
then what is the fucking problem?
This is a really shoddily written article. Bad. Basically he’s saying that fuel costs will remain high and from a business standpoint the risk doesn’t go to zero just because Trump says everything is rainbows. Therefore shipping faces increased costs, which raises prices for consumers, which hurts demand, which lowers shipping volume. And that systemic slowdown doesn’t disappear overnight because Trump says yippee.
I think. If the article weren’t total shit, maybe it would be clearer.
Fuel/oil Maersk, if I recall, does container shipping and has other ways of moving boxes, but all of them burn fuel
And oil isnt moving because the straight is closed.
Yes, so you’d think that reopening the strait should help. Maybe they just mean not right away? It’s unclear.
Yeah all tankers are now on the way to Americas, because they have oil too. US shale oil is now profitable for instance, they can ramp up production in a month or two and been doing that
The main issue in the short term was ships being stuck and ships not being able to get to their destinations in there. Now that's sorted out, it's just a fuel cost issue.
It's a dead end in there, you can't get through it like you can through the red sea into Suez. They are more concerned about that channel. That's why the french have a carrier group near there, to protect shipping against the houthis instead of joining the US in it's current mistake.
Another issue is that oil supply is lower due to infrastructure damage caused by the war.