Commodities
Situation in Taiwan leads to detours and delays in global transport
China’s military exercises near Taiwan have pushed the situation in the region to the limit. Therefore, some ships carrying liquefied natural gas are rerouting or reducing speed. China’s announcement of its military exercises is causing disruptions in global supply chains, leading to detours and delays in energy deliveries.
Gas suppliers are rerouting or reducing the speed of some liquefied natural gas ships bound for North Asia. Shipments to Taiwan and Japan will be affected this weekend, Bloomberg reported.
Shipping companies are assessing their options after China’s reaction to the visit of the highest-ranking U.S. official to the island in 25 years. The action threatens to disrupt one of the world’s busiest waterways.
Risks of escalation in one of the planet’s key shipping lanes are skyrocketing because of the sharp escalation of the Taiwan crisis. Taiwan has issued an official warning that ships should seek alternative routes to safely enter and leave key ports. At least until China’s military exercises are over.
At the same time, ship owners report that the current situation does not prevent tankers from moving through the Taiwan Strait. Consulting agencies also report that the problems for shipping are minor.
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