CNBC: Paul Brashier on How Red Sea attacks impact global trade

CNBC
Dec 22, 2023
Power Lunch

"For more, we're now joined by Paul Brashier, Vice President of drayage and intermodal at ITS Logistics, Paul thank you very much for being here. Drayage and intermodal, that's trucks and all stuff besides trucks shipping containers all over the place. What is the view right now about just how impactful these attacks in the Red Sea could be to upsetting the entire global supply chain? Are we due to have another COVID supply shock like we did over the last couple of years?" Said Dominic Chu, CNBC correspondent.

"Well, it will be problematic Dom. Right now, you're seeing reporting on the spot market rates increasing for the freight that's being rerouted from Asia to the US via the Suez. That spot market pricing you're reporting on now will be impactful, but you're also going to see charges that'll be passed on to the shippers, and ultimately the consumer, as soon as force majeure provisions in these contracts get triggered. So the additional cost to move these under contract will go up, and to avoid the distance someone is going to have to go via the Cape of Good Hope. You have a lot of shippers now that are utilizing Trans Pacific routes from Asia to the US West Coast, and those all have to float under the spot market, and those rates in 2023 under contract were $1,000 to $1,200, and as recent as 48 hours ago, those have gone up to almost $3,000," said Paul Brashier

Listen to the full interview here.

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