The Red Sea, a vital shipping lane, is under attack – what are the alternatives?
Source: Red Sea crisis: What it takes to reroute the world’s biggest cargo ships
I wrote⬇️while reading⬆️:
what is the added cost, in time and money, for shipping around the horn of africa instead of the Suez Canal?? the timing issue can be hanbdled by proper planning (if somehting takes 8 weeks instead of 4, then you porder it for delivery 6 week ahead of need, it will be there when neede,. but there some costs to this that owuld contribute to the $$ cost,: having to give the shipped money faster/ealerier, , fuel cost, crew cost, but hese are likely knopws, like how much additional cost dper day of travll, once launch and unload at destiantion are fixed costs also kn own
maybe try this is ask an economist
same basic question about how the argument that cananda usa are to spread out to have cost effective efficient high speed or even just nowe speed rail; once youre buldoing a railway, what is the additional cost of 1 more km of track + 10% the cost of overunder passes for example
and is this not the “margin value?, the cost to produce the last unit? that term alwayspuzzled me, but this muight explain it
the asked ChatGPT to summarize:
Certainly! Here’s the updated summary with the rephrased point 4:
- The author questions the added time and monetary costs of shipping around the Horn of Africa instead of using the Suez Canal.
- Proper planning can address timing issues, but potential additional costs include faster payments, increased fuel, and crew expenses.
- The suggestion is made to consult an economist for further insights.
- A common argument against rail transportation in Canada or the USA is the greater distances compared to Europe or Asia.
- The author is interested in understanding the extra cost of extending railway tracks by one kilometer.
- The concept of “margin value” is considered as a possible explanation for these costs, especially in the context of building the last unit.
This article in the BBC gives some numbers, but I’m looking for the additional cost/km, all costs factored in:
“Steering clear of the Red Sea and taking the lengthy detour around the Cape of Good Hope, however, adds around 3,500 nautical miles (6,500km) and 10-12 days sailing time to each trip. This requires extra fuel (an additional $1m/£790,000’s worth according to some estimates), possibly finding alternative ports of call, adjustments to delivery timetables, and rising costs. But many companies are making that choice rather than risk attack by missiles and hijackers.”
2024-01-27 – askede this in the Fark.com thread that started this:
There would be crazy global inflation if global shipping had to go around Africa.
I’m curious about this. Someone must know what the additional cost per additional cost/km to take the longer route around the Horn of Africa. Is it significant enough to risk a ship and it’s crew and contents? Or how much more will I have to pay for my crap?
