you wouldn't think we'd be talking about pirates in 2024 but pirates in the red sea are why we dont have your favorite teas in stock and why fresh harvest coffees from africa aren't here yet.
egypt's main source of income is from ships going through the canal. their revenue is down 40% this year. that's a situation likely to about cause drama as well.
the usa and 11 other countries have agreed to patrol the waters and protect the container ships, but it hasnt entirely convinced shipping companies to risk sailing through. a us navy ship intercepted some missles last week. and before that a us fighter jet sank three out of four pirate ships gunning for a container vessel. that was a show of force that gave some confidence to shipping companies. alternatively, going around cape horn and back up the other side of africa adds $1 million of fuel costs, adds 3 weeks to the journey, and has its own risks of choppy water and ice. but that's what some are doing.
$1 million sounds like a lot, but a container ship can have 8000 containers. one container has 320 bags of coffee. each bag has 133 pounds. when you break it down, it adds less than a penny per pound, it's honestly negligible from a financial standpoint.
but an extra three weeks out and three weeks back causes all kinds of shortages in ships and containers and crew members. and the insurance companies are adding premiums both ways. there's risks to both journeys.
a lot of shipments are just sitting in port waiting for resolution.
have you heard people say "permission to board!" when they go on a boat? that goes back to days of pirating where if you went on a ship without permission it was considered an act of violence because unless you're a pirate, you always ask permission first.
arrrgh. talk like a pirate day hits different this year.