Red Alert! Cargo Ship Attacked In The Red Sea By Unknown Assailants!

James Kaufman will do the report today. This is a red alert. Ladies and gentlemen, cargo ship attacked in the Red Sea, not the Persian Gulf, by unknown assailants. I'm guessing it's human. We have a warning coming out of a UK warning system that monitors all shipping around the globe. This is today, July 5th, as you can see, at 7.19 UTC time. It says UKMTO has received a report of an incident 30 nautical miles southwest of Al-Hudaydah, Yemen. A cargo vessel has triggered a distress alert stating that they are under attack by unknown armed assailants. Authorities are investigating the vessel advised to transit with caution for any suspicious activities to the UK MTO. A Red Sea disruption would be terrible timing for global shipping and energy markets coming as vessel traffic through the Straits of Hormuz and the Persian Gulf have just started to normalize in the last few days. An overnight report that a cargo ship was attacked by armed assailants in the southern Red Sea off the Yemen coast is a reminder that the region's maritime risk premier has not totally disappeared. Now, this is the waterway that runs to the Suez Canal, and there are several choke points on this waterway. Now, we've had very little problem thus far over the years with it, but Yemen's a problem for everyone. UKMTO has reviewed a report of the incident 30 nautical miles southwest of Al-Hudaydah, Yemen. A cargo vessel has triggered a distress alert stating that they are under attack by unknown armed assailants. The United Kingdom Maritime Trade Operations wrote in an alert published on X early Sunday morning, if the Bab el-Mandeb Strait seen here, the southern gate for the Red Sea that sits between Yemen and the Arabian Peninsula, begins flashing red again. The Suez Red Sea Maritime Trade Route could quickly become a major headache for global shipping companies, forcing more vessels around the Cape of Good Hope, i.e. around Africa, and reigniting pressure on freight rates, insurance costs, and energy-linked supply chains, thus fueling heavy inflation. You can see that this is the Strait of Hormuz and the Persian Gulf here, and this is the Red Sea, and this is the Strait here, this is Yemen here, this is Ethiopia here, Sudan, Saudi Arabia, the Suez Canal that feeds into the Mediterranean. a very, very busy canal. India, Asia, and Japan's chief economists have recently outlined the critical importance of the Red Sea and keeping the traffic in the Red Sea moving. The Houthi rebels from Yemen attacked ships in 2023 and global trade via the Red Sea has fallen since then. but the Bab-el-Mandeb Strait and Suez Canal still account for over 9% of global maritime traffic, 20% of container traffic, and 8.7% of the world's oil supply. The Cape of Good Hope is an alternative route that could be used, but it involves much longer transit times, higher fuel costs, and increased freight rates. Most all of the crude oil and condensate shipped via the Red Sea is destined for India and parts of Asia, around 68% of the total. Around 40% of all Asian European trade transits the Suez Canal and has since 2024, including manufactured goods, electronics, vehicles, and textiles, intermediate inputs for supply chains, autos, electronics, components, agricultural products, wheat, rice, sugar, and tea. With the Strait of Hormuz basically still blocked, Red Sea disruptions would aggravate the supply chain further. Cost of oil and petroleum product imports would rise for the entire region and globe, and a higher burden for India to purchase much of their crude oil from Russia via the Suez Canal. Now, Asia's exports to Europe could also be adversely affected due to higher freight costs and longer transit times. The dependence of the European auto industry on components imports from Asia could also likely be seriously impacted. Now, thus far, we've had one incident. And again, I would bet it was the Houthi rebels out of Yemen. and that's who, well, boarded the ships and took them over last time. I don't know what the current situation of this actual ship is, because this report was just issued today. We'll know more tomorrow, and I will, well, update you as soon as I have more information. Unbelievable. Please share and subscribe, and always remember, anything's possible. Bizarro world.