Has the Davos capitalist trades union conference issued a communique yet stating the determination of the ruling class to ensure their resolve to guarantee the free passage on the high, low and Red seas of commodity loaded vessels to pass without let or hindrance? Last minute addition: And by jingo if anyone messes with our profits we’ll get our various lapdogs to bomb the hell out of them.
What odds could you get at the bookies that long and serious discussion is taking place there as to when the majority working class are going to become aware that, ‘we are many, they are few?’
‘A prolonged conflict in the Red Sea and escalating tensions across the Middle East risk having devastating effects on the global economy, reigniting inflation and disrupting energy supplies, some of the world’s leading economists warn this weekend.
... economists at the World Bank say the crisis now threatens to feed through into higher interest rates, lower growth, persistent inflation and greater geopolitical uncertainty.’
It is reported that, ‘World trade plunged by 1.3% from November to December 2023 as a result of Houthi attacks on merchant vessels in the Red Sea, according to a new report by the IfW Kiel.
The German economic institute said that the volume of containers transported via the Red Sea had plummeted by more than half as of December and is currently almost 70% below the volume that would usually be expected.
The research shows that currently around 200,000 containers are being transported via the Red Sea daily, down from some 500,000 per day in November.
“The detour of ships due to the attacks in the Red Sea around the Cape of Good Hope in Africa means that the time it takes to transport goods between Asian production centres and European consumers is significantly extended by up to 20 days,” said IfW Kiel’s trade policy research centre.
“This is also reflected in the declining trade figures for Germany and the EU, as transported goods are now still at sea and have not already been unloaded in the harbours as planned.”
The IfW Kiel’s trade indicator for December shows exports from and imports to the EU dropped by 2% and 3.1%, respectively. The US saw a 1.5% decline in exports and a 1% fall in imports, even though the route through the Red Sea and the Suez Canal plays a lesser role for the US than for Europe, according to the report.
‘Container freight rates are surging as attacks by Yemen-based Houthi rebels on cargo ships in the Red Sea have forced shipping giants to send vessels around southern Africa's Cape of Good Hope, Reuters reported.
According to data tracked by the international shipping marketplace Freightos, Asia-to-North Europe rates have more than doubled to over $4,000 per 40-foot container, while prices for Asia-to-Mediterranean shipping have climbed to $5,175.
Some carriers have announced rates above $6,000 per 40-foot container for Mediterranean shipments starting mid-month, and surcharges of $500 to as much as $2,700 per container could make all-in prices even higher, according to Freightos.
The price leap is attributed to attacks carried out by Yemen-based Houthi militants across a key artery leading to the Suez Canal, and have so far forced global shipping majors to send cargo ships on the long journey around Africa. The prolonged voyages last up to 20 days more, and are leading to a shortage of container ships.
Freight rates for shipping to North American ports have been less affected, but have also risen.
Rates for shipments from Asia to North America's East Coast have surged 55% to $3,900 per 40-foot container, while West Coast prices have soared 63% to over $2,700 ahead of expected cargo diversions to avoid Red Sea-related issues.’
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