Iran-Israel strife throws out a lifeline to shippers
War-risk premiums are putting a floor under global shipping rates as the world awaits good news on trade
ESCALATING aggression in the Middle East, most recently with the renewed Israel-Iran conflict, is causing more headaches for global supply chains and logistics operators. Perversely, that’s being turned into good news for shippers already accustomed to bottlenecks and delays.
This month’s seizure of container carrier MSC Aries in the Strait of Hormuz would ordinarily have been enough to put the shipping industry on edge. Yet it’s merely the latest drama to afflict international transport in the past year, and the reaction shows how pragmatic the sector is among all the turmoil.
The narrative surrounding this one ship tells a lot about the complicated story of transport. The fresh bout of hostilities kicked off in October when Hamas attacked Israel, prompting a massive invasion of Gaza.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Opinion & Features
Putin will visit Xi, testing a ‘no limits’ partnership
Regulatory changes a catalyst for corporate service providers to raise their game
App stores are hugely lucrative – and under attack
Rather than Lawrence Wong’s choice of deputies, the post-GE Cabinet is the one to watch
Europe’s geoeconomic competitiveness challenge
As the Japan stock market hits new peaks, is it too late for investors to catch the rising sun?