Jan 8

Red Sea Attacks Pose Threat to Global Economy

All ships seeking to enter the Suez Canal from the Middle East and Asia have to travel into the Red Sea via a 26-kilometre long pinch point known as Bab-el-Mandeb. This Arabic name rather charmingly translates as the “Gate of Tears,” and tears it is now going to cause western supply chains and the fight against inflation.

What started as a few sporadic attacks on western ships in the Red Sea in November have rapidly escalated. Many of the world’s major shipping firms, and at least one major oil company (BP), have now confirmed they will divert their ships the extra 3,500 nautical miles, or 10 days of extra sailing, around South Africa as they head to European and North American ports. …

Source: National Post

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