Posted on 12/18/2023 1:24:47 PM PST by FarCenter
TOKYO -- Shares of Japanese shipping company Nippon Yusen, also known as NYK Line, rose as high as 7% on Monday as investors anticipated higher cargo fees resulting from vessel attacks in the Mideast.
NYK Line closed 6.2% higher at 4,155 yen, marking the eighth-biggest percentage gain on the Tokyo Stock Exchange's Prime market.
Since the Israel-Hamas war broke out in October, vessels navigating the Red Sea off the coast of Yemen have been subject to attacks by Houthi rebels. Militants last month seized a British-owned car carrier chartered by NYK Line.
U.S. Defense Secretary Lloyd Austin said Monday that Washington was in talks to build "an international coalition" to deal with the threat to shipping posed by the Houthis.
The high-risk situation in the region has already led some of the world's biggest shipping companies, including AP Moller-Maersk, to suspend passage through the Red Sea.
Maersk's decision was a direct factor in the stock market's reaction on NYK Line, said Ryota Himeno, senior analyst at JPMorgan Securities Japan.
Shipping rates were falling after pandemic-related disruptions to the supply chain subsided. But this month, the benchmark Shanghai Containerized Freight Index showed signs of bottoming out.
"There is now a widespread view that price pass-throughs will increase because of more rerouting around the Cape of Good Hope," Himeno said.
(Excerpt) Read more at asia.nikkei.com ...
Apparently America is too weak to do anything unilaterally anymore for our own defense.
Simple solution: arm up the vessels. Pirates deserve to pay the ultimate price.
Gee, we sure spend a lot of money on a Navy whose prime role is to maintain FON ( freedom of navigation) in international waters.
Maybe less drag queen recruiting commercials are in order.
>>Apparently America is too weak to do anything unilaterally anymore for our own defense.
Do we ship much through the Red Sea? I thought our stuff came from the Far East via West Coast ports or the Panama Canal?
We don’t import much oil from the Middle East. Most of that goes to Europe or Asia.
Not sure, but the Houthis are a terrorist group that threaten all type of American interests and security.
Do you not think that we are affected if oil shipments to our allies are disrupted?
Leads to more competition for alt sources. And higher world prices.
A lot of Midwestern American grain to Asia ships through Suez and Red Sea.
>>Do you not think that we are affected if oil shipments to our allies are disrupted?
Our allies need to pull their own weight. If their oil shipments are disrupted, they need to solve their problem.
The grain could be routed around Cape of Good Hope or via the Panama Canal.
The Dwight D. Eisenhower Carrier Strike group has left the Persian Gulf and is now on station off the coast of Yemen, a defense official confirmed to USNI News on Monday. The other ships accompanying Ike are guided-missile cruiser USS Philippine Sea (CG 58), and guided-missile destroyers USS Gravely (DDG 107) and USS Stehem (DDG-63).
U.S. Central Command announced that an Ohio-class submarine arrived in its area of responsibility earlier last month. The submarine was later confirmed as USS Florida (SSG-728). These SSGNs carry up to 154 Tomahawk Land Attack Missiles.
https://news.usni.org/category/fleet-tracker
I suppose we could go back to the Bill Clinton practice of firing a couple dozen Tomahawks at the terrorists.
But I don’t think it did much good.
And Tomahawks are expensive, while terrorists are cheap.
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