Global shipping routes are affected by the situation in the Red Sea, and grain transportation is facing new challenges?
The impact of the Red Sea storm on the world's food** The Red Sea event triggered the re-planning of maritime transport routes.
In recent years, the Red Sea problem has become increasingly serious, which has had a certain impact on the world's food industry. Why does the Red Sea, a region far from the world's major cereal-producing regions, make such a significant contribution to world food security? The reason for this is that the Red Sea region has changed the world's maritime transport routes, especially the "Bab el-Mandeb Strait" near Yemen, which has become the only way. Affectionately known as the "Gate of Tears", this passage connects the Red Sea with the Suez Canal. The Suez Canal is the most convenient shipping route between Asia and Europe, with 24,000 ships entering and leaving the region each year, accounting for 12% of the world's total cargo traffic. However, due to the impact of the Red Sea incident, shipping companies will sail the Cape of Good Hope in southern Africa, extending the sailing distance by nearly 6,000 miles, resulting in an extended transit time of 30 working days, resulting in freight and insurance costs**.
Expansion: This change in shipping routes has made the ocean transportation of the entire world less smooth. By detouring the Cape of Good Hope, both the route becomes farther and the route becomes more uncertain and dangerous. Because ships often sail in windy and rough seas, they are prone to encounter emergencies such as bad weather and piracy, which greatly increases the danger of freight. The shipping company must transfer this cost to the ** of the goods to avoid unnecessary losses, and finally lead to the *** of the international goods
The challenges of international maritime transport.
The Red Sea crisis is intensifying, which in turn has an impact on world shipping. At the same time, with the paralysis of the Panama Canal, some companies began to pin their hopes on Suez, another route between Europe and Asia. For the first time ever, both major transport hubs are in danger of being cut off. Once this happens, it will have a huge impact on the world economy, especially the maritime industry. The rise in freight rates will inevitably affect all kinds of goods, causing a series of chain reactions. Cereals, which are key to the world's food security, will also suffer a direct impact.
Expansion: At the same time, international food markets are indispensable in the economic systems of all countries. The trade of food is related to the food and clothing of hundreds of millions of people, and it is related to the strategic allocation of goods between countries. If international freight channels are blocked and food trade is blocked, it will inevitably lead to a food crisis around the world. The transportation of a bag of wheat and a soybean may be a family's wish to eat and clothe themselves. The slightest disturbance in such a critical industry will cause turmoil in the global industrial chain, which will then affect the survival and survival of hundreds of millions of people.
The multifaceted effects of the food trade.
The Red Sea Corridor is an important passage for food trade from all over the world. 14% of the world's food and 45% of soybeans are transported through the Suez Canal. This ratio is particularly important in some major food-exporting countries. Take the EU, Russia, Ukraine as an example, 20 to 30 percent of the world's goods are transported through the Suez Canal and the Red Sea. If food in the region were to be diverted further afield, for example around the Cape of Good Hope, it would have a significant impact on world food supply and demand patterns.
Expansion: This change is not just a change in geography, it will also have a huge impact on the world food market. As an important livelihood project, food is related to a country's economy and people's livelihood, so it is also a must for many countries in the world. As soon as there is a turbulence in world food prices, it will not only affect the bulk products, but also major events related to the national economy and people's livelihood. Therefore, food ** is not so much a commodity transaction, but an international cooperation and win-win.
China's food imports are facing a severe test.
In addition, the closure of the Red Sea shipping lanes will have a negative impact on China's food imports. We have always relied on Ukrainian grain, for example, about 29% of Ukrainian grain comes from Ukraine. With its low price**, it has become a staple food in the country**. But if the Red Sea shipping lanes are cut off, it will increase the cost of the grain we buy from Ukraine, which in turn will prompt us to change our import strategy and export to the United States, Brazil and other places, which also means that the increase in the price of imported corn will inevitably have a major impact on the domestic grain market.
Expansion: China is the world's most populous country, and food security has always been a major issue related to the national economy and people's livelihood. The slightest fluctuation in the food supply chain can have a serious impact on a country's economic life. China's food imports are stable, which is related to the lives of hundreds of millions of people. When the international market changes, China must make corresponding changes to its import strategy and increase its dependence on foreign countries. Moreover, this change in strategy is not just a change in the place of import, but also a country's economic power and the international relations associated with it.
The conclusion is that the Red Sea incident will bring multiple shocks to the world food market, rising shipping costs, and many problems such as the blockage of China's grain imports. This highlights the weaknesses of the world food supply system and warns the world to find diversified imports as soon as possible to reduce the risk of the collapse of the world food supply chain. Only by strengthening international cooperation and achieving mutual benefit and win-win results can the world's food security be effectively guaranteed, and more than one billion people will be well fed and clothed.