Are you concerned about the rise in shipping piracy? Join Christopher Mason and Dr. Ian Oxnevad as they break down this strategically important geopolitical crisis: Seeing Red: Supply Chain Crisis.
“If you want first mover advantage, you need people on the ground. You need the intelligence.” Dr. Ian Oxnevad.
📌 Geopolitical risks have consistently shaped global commerce, significantly impacting the shipping industry.
⚡ One of the most recent supply chain disruptions stems from the conflict involving the Houthis in Yemen.
📌 Backed by Iran, the Houthis have increasingly targeted shipping routes through the Red Sea, causing substantial disruptions.
⚡ Attacks have heightened regional instability & resulted in skyrocketing insurance costs for vessels.
📌 Insurance war premiums on shipping vessels passing through the region have doubled, indicating the heightened risk and operational costs faced by shipping companies. Some carriers no longer offer coverage.
⚡ These disruptions contribute to a broader economic impact far beyond the shipping industry.
📌 Consequences of the disruptions in the Red Sea shipping routes are felt worldwide. European countries are experiencing longer shipping times, which translates into increased costs and operational inefficiencies for businesses dependent on timely shipment deliveries. This has indirectly affected consumers through increased product prices, exacerbated by global inflation figures.
⚡ Rerouting of ships around Africa has resurrected piracy off the Somali coast, spreading into the Indian Ocean & leading to further financial burdens in higher security expenditures.
🌍 This has also added to certain economic downturns in Africa, with about 57 million individuals now grappling with food insecurity, further illustrating the humanitarian dimensions of the geopolitical conflicts.
📌 Another significant impact is risk posed to regional fishing industries. The area is a crucial fishing zone; ongoing attacks and the potential for significant oil spills present severe environmental risks to the health of the fisheries. These dangers threaten marine life and can disrupt the livelihoods of locals who depend on fishing as a primary source of income and food.
🌍 To avoid the impact of the crisis, you must closely examine your risk exposure and explore alternative supply chain options.
Infortal’s Continuing Legal Education (CLE) courses are designed to equip executives, attorneys and risk managers with strategic insights to navigate the complex landscape of geopolitical risk. We cover topics such as international sanctions, regulatory risks, corporate espionage, AML, global warfare, anti-terrorist financing and corruption.
We can help you make informed decisions and mitigate potential risks for your business.
