Ryan Petersen

The Houthi attacks will not be able to significantly disrupt traffic through the Red Sea/Suez Canal for a long period of time; the disruption will be relatively short-lived because major global actors will ensure that shipping through this route continues to flow.

“I wouldn't read too much into this. And frankly, the Suez Canal is too valuable, in my opinion, too valuable to civilization, to the modern world to believe that, you know, a group of rebels, no matter how well funded they may be, is going to be able to disrupt that for any long period of time. I think there's too many interests aligned here to say to keep this thing flowing.” View on YouTube

If the Red Sea/Suez disruption caused by Houthi attacks continues for another 1–2 weeks beyond late December 2023, there will be large increases in global air freight prices, and shipping prices from Asia to the US will also rise noticeably due to redirected capacity.

“the airlines are a little bit less connected to this market and haven't instantly said, hey, we're raising prices in January. But I suspect if this lasts another week or two, you're going to see big run ups in air freight prices. And these are global markets. The price of freight from Asia to the US gets impacted because they're pulling ships off. The supply gets redirected, the planes get rerouted. Um, it is a global market, so an impact here will affect prices of shipping Asia to us as well.” View on YouTube