Important update by CNBC's Lori Ann LaRocco on the Red Sea terrorism that is impacting the US and European economies. According to the congressional testimony of a high level exec at the world’s largest shipping company, MSC Mediterranean Shipping Company, the impact of Houthi attacks on carriers in the Red Sea will be ‘far greater’ on consumer prices than on oil. At the same hearing, the National Retail Federation noted that smaller merchants are already passing along the freight increases (double, in many cases) to the consumer. The Biden administration's reluctance to defend U.S. shipping routes out of an innate reluctance to do anything militarily is not only sending the wrong message to the world, it will have immediate ramifications on the U.S. economy and consumer in the form of higher pricing. And its happening just when you thought inflation was starting to level out to a reasonable level. This is yet another of the costs of allowing terrorism to exist simply because it doesn't target you directly. Enabling and excusing the Iranian (and United Nations) funded Islamic terror in Israel - and then criticizing Israel for its efforts to combat it - simply encourages global terror and furthers the bloodlusting idea in the minds of the jihadists that the western world is ripe for destruction. Failure to protect trade routes from these terrorists reinforces their visions of global sharia domination - especially if the results are not only in longer lead times but in direct and substantial economic harm. #supplychain #freight #logistics #redsea #terrorism #israel #defendtraderoutes
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Trade alert, my latest CNBC article on the Red Sea. Today the disruption was the subject of a hearing on Capitol Hill. #Logistics’ #LogisticsManagement #Trade #MaritimeNews #BusinessNews #Commodities #Containers. https://lnkd.in/edMBqkqi
Managing Director
7moVery good point. Everything these days is interrelated and a sneeze in Asia can echo to a hurricane in North America. Hope is not a strategy.