Global trade faces a renewed threat due to missile attacks connected to the Israel-Hamas conflict, targeting commercial ships in the Red Sea near the Suez Canal. This may compel many vessels to choose the longer but safer route around Africa, consequently elevating oil prices.
For shipping owners, this development presents both opportunities and challenges. On one hand, clients will be compelled to accept higher rates as a result of increased risks. On the other hand, shipping companies will need to absorb rising fuel costs. Among the shipping sectors, tanker and liquid petroleum gas shippers are in a favorable position due to tight capacity utilization. Moreover, their bargaining power has been significantly boosted by recent issues at another major canal—the Panama Canal.
0 Comments