by Susan Duclos, All News Pipeline:
After the severe shortages of 2021, from food to electrical products to appliances and more, things did get a little better, as the supply chain issues began to level out, but now we are facing upcoming shortages once again.
Only this time the shortages will not be from pandemic lockdowns and school closures, but rather due to Yemen-based, Iranian-backed Houthi terrorists, attacking ships in the Red Sea.
The Houthi are being referred to as “rebels” in most the reports about the Red Sea attacks, yet it wasn’t until 2021 that the Biden regime lifted the designation of the Iranian-backed Houthis in Yemen as a global terrorists.
TRUTH LIVES on at https://sgtreport.tv/
Yet another boneheaded move on the part of Biden and his puppet handlers.
The importance of the Red Sea trade routes is explained by Susan Stigant at the United States Institute of Peace.
Stigant: The Red Sea is a major artery for global trade. About 12% of global trade passes through the Red Sea, which accounts for billions of dollars of goods and about 30% of the world’s container shipping. Access to the Red Sea requires passage through the Bab al Mandab — a narrow strait about 20 miles wide with Djibouti to the west and Yemen to the east.
Several large shipping companies — seven out of the 10 biggest shipping companies, including Maersk, and BP — have made the decision to halt shipping through this corridor. Some companies will use a new route traveling south through the Indian Ocean, around the Cape of Good Hope in South Africa and then up the western coast of Africa. This could add up to two weeks to shipping and add more than $1 million to the transportation costs. Ultimately, the additional time and the additional expenses could raise the prices for fuel and availability of goods.
A number of companies are already facing delays and shortages. Those include, but are not limited to:
Ikea, which sells home furnishings and goods, issued a statement from their parent company Inter IKEA Group, stating “The situation in the Suez Canal will result in delays and may cause availability constraints for certain IKEA products.”
Dairy group Danone: They a pioneer innovative food, drinks & specialized nutrition that can positively impact health, according their website.
Electrolux, one of the world’s largest appliance companies, expects deliveries to be limited as they look for alternative routes and prioritizes certain deliveries, according to Forbes on MSN.
Bloomberg reports that clothing brand Abercrombie & Fitch are thinking about using air freight which costs far more, meaning those costs will trickle down to consumers.
Another little tidbit from the U.S. Institute of Peace:
Several large shipping companies — seven out of the 10 biggest shipping companies, including Maersk, and BP — have made the decision to halt shipping through this corridor. Some companies will use a new route traveling south through the Indian Ocean, around the Cape of Good Hope in South Africa and then up the western coast of Africa. This could add up to two weeks to shipping and add more than $1 million to the transportation costs. Ultimately, the additional time and the additional expenses could raise the prices for fuel and availability of goods.
Top that off with the fact that global shipping rates have already increased due to the Houthi terrorists, and we are looking at the very real possibility that inflation numbers are going to start spiking again.
$80 billion. That’s the value of the cargo shippers have diverted from going through the Red Sea as of Tuesday, CNBC reported.
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