Updated: Dec 20, 2022
Throughout history, the shipping trade routes have defined the next era of development for the global economy. Though in recent times land & air routes have started contributing to this even today majority of contribution comes from water route. And this has caused various problems in past few years.
Starting with the first phase of lockdowns, when sourcing essentials became the most difficult task as many countries had paused the loading and unloading at the ports. This created severe pressure for many as they reopened and face shortages of all kinds. After more than two years there are some signs of improvement but not fully sorted.
As this was sorting the military conflict between Russia and Ukraine brought the wheat and other food essentials to a halt. Even though the recent deal helped restart the trade it is still 60-70% below the levels from pre-conflict.
Due to this various sanctions and geopolitical policies have been introduced. Resulting in rearranging the trade of energy essentials if not more such as the USA becoming the largest gas to Europe and Russian becoming the largest oil supplier to India.
These changes are here to stay and they make the supply of certain goods vulnerable till the medium term if not longer. Such as a price cap on Russian oil resulting in being denied passage to ships passing through Turkey.