The Hijack of Saudi’s Super Tanker could have impacts to International crisis

The Hijack of Saudi’s Super Tanker is a domestic situation in Somalia that could have impacts to International crisis. The increasing piracy attack has doubled this year compared to last year and it’s clear an extended escalation of the threat to global shipping in extended region.

Consequently, shipping cost will increase from the insurance premium along with increasing shipping security woes. But the hijacking Saudi’s Super Tanker is still not getting attention enough from the other governments in which their economy mostly depend on global shipping activities even though piracy activities could halt international trade. It reminds us that in the last era of Rome Empire, its economy had been decayed by the increasing piracy activities.

Oil prices are vulnerable to the supply issues. When the piracy news came on November 17, the oil prices were up by $1 to $58 a barrel as markets reacted to the supply threats. Even the next day oil prices backed to down because of the bearish trend of the global commodities market.

The current international shipping is facing two crucial threat increments that could halt international trade:

1. Increasing shipping cost is due to increasing piracy activities.
2. Letter of credit (LC) frozen is due to liquidity crisis, see.
   

What we should know is the pirate booming in along the Somali east coast through the Gulf of Aden is due to instability of the country. It has been forcing Capitalist in New York and London to pumping millions of dollars.

Please Note!

This is generally never true. Before buying or selling any asset you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

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