Chinese military exercises near Taiwan disrupt key shipping routes – 'Taking precautions!'

Date:

Share post:


As a result disruption has been caused to key trading routes for cargo and commodities being exported across the world according to analysts. On Thursday, furious at US House of Representatives Speaker Nancy Pelosi’s visit to Taiwan, Beijing began four days of military drills around the island.

The drills include the firing of live missiles and deployment of fighter jets.

Taiwan’s ports are open but some cargo ships and oil tankers have altered their routes around the island to avoid a confrontation with the Chinese military.

In some cases this is adding around half a day to voyages, according to analysts and ship owners.

It is a stark reminder of the havoc that was caused by an open conflict between Beijing and Taipei.

This is particularly the case given the fact that the 110-mile Taiwan Strait and a shipping lane east of the island are major routes for ships transporting goods from East Asia to the United States and Europe.

Niels Rasmussen, chief analyst at shipowner association BIMCO, said: “Some ships have already taken precautions and are proceeding east of the island instead of through the Taiwan Strait.”

It comes after disruption at Chinese ports earlier this year as a result of Beijing’s dynamic Zero Covid Policy affected global supply chains and fuelled inflation.

Zvi Schreiber, CEO at Freightos shipping index argued that more prolonged military drills by Beijing could add to delays for shipping companies 

READ MORE: Russia pundit offers North Korea free rein to join in Ukraine

Shipping insurance groups have also seen alerts to members urging caution when navigating around Taiwan.

Tankers and container ships are still docking normally in Taiwan.

However, analysts have warned that even minor delays for ships could be a concern as global trade is still recovering from the impact of the coronavirus lockdowns.

Peter Sand, chief analyst at ocean freight platform Xeneta said that any delays could put even more strain on supply chains.

He said: “As ships are utilised for by-passing the tensions and not for expediting trade it’s a move in the wrong direction – meaning more hardship for supply chains.”



LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img

Related articles

Aldi unveils plans to open 16 new stores across UK – full list of locations

Aldi UK and Ireland chief executive Giles Hurley said : "The cost-of-living crisis is worsening, and it's...

Prince Harry launches legal action against Associated Newspapers over privacy

A group of people including Prince Harry, singer Sir Elton John and his partner has launched legal...

Putin's propagandists scramble to blame Russian military top brass for Ukraine war losses

Ukrainian forces have turned the tide in the war against Russia, military observers say, in a successful...

From heart disease to dementia: Cocoa can slash the risk of 3 leading causes of death

One approach to longer life lies in warding off the precursors of chronic disease. While colourful fruit...