Recently, the world has revealed another astonishing story - the sharply deteriorating security situation in the Red Sea.
There is a global event whose impact has spread to the most common corners of the globe, such as our delivery boxes. Yes, you heard it right. Shipping giant Maersk has decided to temporarily suspend all routes through the Red Sea and increase freight rates by hundreds of dollars on major routes due to the constant piracy threat launched by the Houthis. Why is this so, you may wonder, what is the story behind this?
Heart of Cinnabar, King of Carpets", and Baba Turchin Lake, which are all aliases for the Red Sea. But behind the beauty, there are hidden winds and waves and dangers. Although Maersk and the U.S. Navy have denied that their cruise ship Maersk Gibraltar had been attacked, they cannot deny that the security situation in the Red Sea is deteriorating dramatically. The Houthis have openly challenged the global shipping industry, so much so that Maersk has had to take steps to find a workaround.
So, that's the hundreds of dollars you're going to see on courier fees. Maybe one day you order a pack of coffee from Europe, and you will chew not only the bitterness inside, but also the storms and crises of the Red Sea.
Maersk's statement made it clear that the decision would be comprehensive and tight, and that both cargo that had already set sail and future shipments would be affected by this increase in price to cover the additional costs associated with ensuring safety. No matter how much money you have, you can't buy security, and that's the resolute decision Maersk gave us.
Although temporary, the price increase will have a significant impact on the world. This is not limited to routes that need to be detoured, many of the originating directions will be forced to add fees. Your heart may be as deep as the ocean, and the questions in your mind are as turbulent as the waves. Why?The reason is simple – unsafe routes, longer voyages, mean higher costs and higher freight rates. Maersk's route, which originally passed through the Red Sea, was now forced to make a detour through the Cape of Good Hope in South Africa, which undoubtedly added about 10 days to the voyage and huge fuel costs.
On the other hand, this "differential treatment" freight policy may have an impact on the international ** direction. Although many shipping companies are confused about how the Prosperity Guardians alliance will distribute tasks and responsibilities, they have begun to adjust routes and freight rates in an attempt to cope with the chaos. The world's top five shipping lines by capacity have all announced the suspension of the Red Sea route.
Most worryingly, however, this may be just the tip of the iceberg. The United States has been trying to suppress China's prosperity and rise, and this shipping crisis will only provide more reasons and opportunities for those with malicious intentions. The pressure on China is not as simple as superficial economic pressure.
Behind the scenes, armed conflicts, geopolitics, the pandemic and other factors have plunged the entire shipping industry into tension and unease. Although the United States has formed the "Prosperity Guardian" multinational maritime coalition to try to protect the shipping lanes of the Red Sea, the reality is that they have not nipped the storms of the ocean in the bud. All of this quietly tells us the fact that security, especially at sea, is so fragile.
In today's globalized world, what happens anywhere can have a profound impact elsewhere. Maersk's freight rate** is only part of this marine story, and we can only wait for the deeper impact and impact.
In the context of complex and evolving impacts, our shipping industry may follow the words of the donor seal: "We must learn to navigate the storm, not the storm." "Maersk's response to the Red Sea crisis may reshape the future of the shipping industry, and we look forward to seeing more changes and progress.
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