Ten-nation task force unites to defend Red Sea trade 🛡️

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Ahoy and welcome to our final newsletter of 2023! What a journey it has been. In just four short months, we have exceeded our wildest expectations, surpassing 1.3 million total impressions from readers in over 100 countries and growing our subscriber community to over 180,000 🎉. We want to extend a heartfelt thanks to each and every one of you for your support; we are truly grateful 🙏🏽. We have big plans for 2024 including more content, new courses and tools that we have been diligently working on behind the scenes so stay tuned. Until then, we wish everyone a Merry Christmas and a Happy New Year 🎄 ho ho ho 🎅🏽.

In today’s email:

  • Heating Up: 🌋 Iceland’s volcano and effects on air-cargo. 

  • On The Clock: 🚚 Last mile delivery times for Target, Walmart & Amazon.

  • Defending The Seas: ⚔️ International forces unite to shield Red Sea trade. 

AIR-CARGO NEWS

Icelandic Volcano Erupts: Air Traffic On Alert

A new volcanic eruption commenced on the evening of December 18 near Grindavik, Iceland, following weeks of seismic activity along the Reykjanes Peninsula. The eruption, originating about 4km northeast of Grindavik, was marked by visible magma flows along a hill ridge. Authorities have restricted access to the area, prohibiting hiking and maintaining road closures, though Keflavik International Airport remains open with uninterrupted operations.

The impact of volcanoes on air travel is significant, as demonstrated by previous events. The eruption of Eyjafjallajokull in April 2010 is a stark example. It resulted in the cancellation of over 100,000 flights between Europe and North America over eight days, caused by a quarter of a billion cubic meters of ash dispersed into the atmosphere. This disruption was due to unique circumstances where a glacier atop the volcano rapidly cooled the lava, creating fine ash particles propelled into the air.

In contrast, the current eruption in Iceland, like the three others on the Reykjanes Peninsula in the past three years, presents a lower risk to aviation, partly due to the absence of significant ash emissions. Nonetheless, volcanic eruptions can endanger flights by causing engine failures, damaging flight control systems, and reducing visibility. The European Aviation Safety Agency (EASA) is now better equipped to handle such events, promising coordinated efforts to assess and mitigate aviation impacts.

Although the immediate effects on air travel remain minimal, the unpredictability of volcanic activity makes it challenging to forecast the extent of potential disruptions. The Icelandic Met Office emphasizes this uncertainty, with the eruption's duration remaining unknown. Airlines advise passengers to remain vigilant for updates, underscoring the profound impact volcanoes can have on air cargo and freight, with potential for significant logistical and economic consequences.  See drone footage of eruption here 

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VIDEO OF THE WEEK

Walmart, Target and Amazon’s Delivery Speeds

Amazon, Walmart and Target are investing big in new processes to cut down delivery time. Each company has developed its own strategies for faster shipping, but how do customers know which option to use to ensure they get their products quickly?

GLOBAL TRADE SNIPPETS

Chinese exporters shift focus to Southeast Asia, Middle East as European, US orders tumble. Chinese exporters, who used to regard Europe and North America as their main overseas sales destinations, are now turning their attention to emerging markets such as Southeast Asia and the Middle East as orders from developed western countries slump amid higher tariffs and other factors.

Nearly 10,000 railcars held on US/Mexico border. Spans into El Paso and Eagle Pass were shut down Monday in response to rising numbers of illegal entries into this country. Migrant encounters across the entire southern border topped 10,000 last Tuesday, down just slightly from the record 12,000 seen in one day the week before.

Malaysia bans Israeli owned and linked shipping citing ‘cruelty against the Palestinian people’. The announcement by Prime Minister Anwar Ibrahim’s office said the ban would take place with immediate effect and was in response to Israel’s conduct in its conflict with Hamas.

SHIPPING NEWS

International Coalition Unite to Defend Red Sea

Operation Prosperity Guardian, a new multinational security initiative, was recently announced by several nations including the United States, United Kingdom, Bahrain, Canada, France, Italy, Netherlands, Norway, Seychelles, and Spain. This operation aims to safeguard merchant ships in the Red Sea area from drone and missile attacks, particularly those launched by Houthi rebels in Yemen.

The U.S. Defence Secretary, Lloyd Austin, stated on December 18 that the initiative would operate under the Combined Maritime Forces (CMF) and its Task Force 153. The CMF, a 39-nation maritime partnership based in Bahrain, focuses on securing various strategic maritime regions and countering piracy. Task Force 153, established in 2022, specifically addresses human trafficking, smuggling, and the interdiction of illegal weapons and drugs in the Red Sea.

Approximately 20,000 commercial vessels travel through the Red Sea and Gulf of Aden annually. The initiative representing more than 35 countries, responds to over 100 attacks by Houthi rebels using drones and missiles against merchant vessels, .

Diverted: Yellow dots show vessels shipping around Africa to avoid conflict.

Several nations have already committed resources to Operation Prosperity Guardian. Britain is deploying the HMS Diamond, a Type 45 destroyer with air defence capabilities, which recently intercepted a Houthi drone. This marks the Royal Navy's first aerial target engagement since the Gulf War in 1991. Italy is contributing the multimission frigate Virginio Fasan to counter terrorist activities and protect shipping routes. France's multimission frigate Languedoc has been active in the area since early December, successfully engaging hostile drones. Norway is providing staff officers to the CMF, and the Netherlands is contributing two staff officers while considering the deployment of ships.

This collaborative effort underlines the international community's commitment to maintaining freedom of navigation and regional stability in the face of increasing security threats in the Middle East. See one min recap clip here

SHIPWRECK OF THE WEEK ⚓️☠️ 

The Dimitrios shipwreck, located near Gythio on the Greek Peloponnese coast, is a captivating sight. This abandoned cargo ship, approximately 67 meters long, has been rusting on the beach since 1981. While its history is unclear, local lore suggests involvement in cigarette smuggling. Its decaying structure set against the picturesque seaside makes it a popular photographic subject and a symbol of mysterious maritime history... Click to see shipwreck 👀

GLOBAL TRADE TRIVIA

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RECOMMENDED READS

The Fiat Standard. World-renowned economist Saifedean Ammous applies his unique analytical lens to the fiat monetary system, explaining it as a feat of engineering and technology. Ammous delves into the world's earlier shift from the gold standard to today's system of government-backed fiat money—outlining the fiat standard's purposes and failures; deriving the wider economic, political, and social implications of its use.

How Wall Street Created a Nation: J.P. Morgan, Teddy Roosevelt, and the Panama Canal. This book unveils J.P. Morgan and Teddy Roosevelt's pivotal role in constructing the Panama Canal, an epic feat of engineering and finance. Delving into the fusion of ambition, politics, and money, it captures how this grand project reshaped global trade and marked a turning point in U.S. history. A must-read for those intrigued by power, innovation, and history's turning points.”

GLOBAL TRADE MEME

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