The waters of the Caribbean have become ‘a contested maritime and political environment’ that will ultimately affect consumers globally. Picture: iStock With integrated global markets and fears that similar US actions may follow in Greenland, and that Trump may target other strategically positioned routes and ports, this is something that concerns everybody. The events “transformed one of the hemisphere’s key coastal states into a contested zone of authority, forcing shipowners, charterers and insurers to confront operational risks on a scale the region has not witnessed in decades,” Morgan writes for gCaptain, a website that provides maritime and offshore news and insights.
He explains that following the attack there was a power vacuum, and as long as there is uncertainty about who controls what, the shipping industry is in a very difficult position. “Bills of lading, title and payment chains could all be challenged if a future Venezuelan government or international tribunal deems current loadings illegal,” he says. He further warns against increased insurance premiums and requirements for pre-notification of trips to these waters, risk-averse financiers, and that some prominent shipping companies may decide to avoid the area completely and rather take longer, safer routes.
Looking at a map of global shipping routes, it is clear how busy the Caribbean is and how interlinked it is with other shipping routes. Jan Scheepers, CEO van Comozar, which operates within the South African maritime sector, agrees that Trump’s Venezuelan adventure led to a huge increase in risk for commercial shipping in the southern Caribbean that may last for years. “It effectively changed the waters to a contested maritime and political environment for ship owners, agents, cargo owners and insurers.”
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