If you think about the war in Ukraine and Russia, it has changed warfare because of the use of drones. Drones can carry bombs and fly past boundaries and if they are shot down, others can be launched. The system to guide the drones is available to both sides of the war and both sides have ramped up production of drones. The same drones can be and are being used for other types of wars around the globe. If you look at the globe and consider it from a shipping point of view – given that the cost of moving goods over a long distance is cheapest on a boat or ship and over the past few years the ships have become larger and can carry more containers. Where are the pinch points in the global shipping traffic. The pinch points are 3 locations – the southeast China Seas where pirates have operated for centuries, the Red Sea going to the Suez Canal and the Panama Canal which is having water problems. The canal cannot handle the biggest ships which means the manufacturing supplies moving from China and India and other countries are going to Europe and then the US tends to go through the Red Sea – Suez Canal route.

In an article by Terje Solsvik of Reuters, in December the world’s top container shipping companies including Maersk and Hapag-Lloyd stopped using Red Seas routes after Yemen’s Houthi militant group began targeting vessels disrupting global trade. The Houthis were using drone attacks which a container ship cannot defend itself. But the world’s largest navy can – the US Navy and other European navies are now escorting ships though the Red Sea.

To avoid attacks, Maersk rerouted ships around the Cape of Good Hope or around Africa but fees when up and the time it takes for a ship to go around Africa and dock in Europe added weeks to the schedule on time delivery. The cost is $700 extra for a standard 20-foot container.

Linking to dividend paying stocks, for generations the interest of the country including commercial interests have been protected by the military of the country. It is one of the reasons why the seas have been relatively peaceful, and goods travelled throughout the world. To go against shipping is to bring the world’s navies as your enemy. Many dividend paying companies benefit from the interests of the country and the resources it needs to ensure a stable continuing dividend.

There are more questions than answers, till the next time – to raising questions.