Comments by "Louis Giokas" (@louisgiokas2206) on "Shipping Crisis Hits China! Profits Tumble by 78%,With Supply Chains Potentially Relocating to India" video.

  1. "...currently land and air transportation are significantly more expensive compared to sea transportation..." implies that it could be otherwise. Not true. Sea transportation will always be cheaper. All the grand plans China has to incorporate alternatives including land transportation (primarily rail) will increase shipping costs. It is a political exercise, not an economic one. Why so you think the original Silk Road disappeared? Considering the relatively fragile nature of long-distance sea transportation at its dawn in the era of sail, it shows how fraught that original Silk Road route was. The current transportation system we have grew organically and was not mandated by any political entity. It was made possible by the US guaranteeing security on the high seas. China, the biggest benefactor of this system now wants to overthrow it. That is one of the dumber foreign policy decisions of all time. It shows, if more proof were needed, the immaturity of Chinese foreign policy and governance. Frankly, the sentiment in the US is that the cost of maintaining the system is not worth it. This parallels the issue with the British colonial system. In the end, it was the cost of maintaining directly controlled colonies, like India, that brought about the dissolution of the empire. For the US, the order that was set up was a response to the threat of the Soviet Union. If you hadn't noticed that threat disappeared thirty years ago. The US Navy has not been configured to maintain shipping safety for a long time now. It has morphed into a power projection force, not a protection force. So, China sits on the sidelines in this crisis and, for purely anti-American political reasons, tolerates and even supports, clandestinely, the instability in the region. The Chinese navy actually has a squadron of ships stationed in the area. They have done little or nothing to help resolve the crisis. Now it is Chinese businesses that will suffer as a result.
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  2. The latest futures price for WTI crude is $72.78 per barrel. While it did increase, I didn't see it go to over $80, and I look every day. The current price is the level it has been for some time now.
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  3.  @hemaccabe4292  Thank you. I think a lot about these issues.
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