Ton-mile analysis of the most basic sort indicates severe shortages of critical products to Europe if the Red Sea route is closed for long, in the present environment. Basically, product deliveries are inversely proportional to voyage time. Most routes double in time, some go as high as 4x. (I’m uncertain if this accounts for some ships having to bunker in South Africa, a whole ‘nother problem as that’s been erratic.) LNG looks to be a huge problem, as the supply of ships is tight already, despite new builds. Ship anywhere near enough LNG from the US and our gas prices go back up. I doubt we have the terminal capacity anyway.
USA won’t be hit as hard as Europe, but ripple effects will still be rough. I’d not be shocked if some major Euro economies actually collapse, and I’ve been an advocate ever since Pooty invaded Ukraine that Euro economies were more robust than the Rooskie tools and trolls would have us believe...
Lucky we get most of our goods from the Pacific Ocean so we're not affected by what's happening in the Red Sea.
If it’s mainly “european” problem, what are they doing about it??
The biggest enemy of European economies is not the Putin boogie-man.
It is the Greenies inside their own borders.
All Putin has to do is point and laugh.