Here's how global trade is being impacted by danger in the Red Sea
The following infographic summarises the situation well:
Most economists and talking heads believe the disturbances to trade via the Red Sea will lead to a surge in inflation in Europe, the trading zone most impacted.
However, there is another outcome, which is that retailers in Europe will source fewer goods from Asia and will start to look at West Africa and South America for stuff that can be transported via the Atlantic.
When you think about it, it's ridiculous that stuff travels great distances from China to Europe, when they could buy goods from Mexico and Brazil which are much closer.
There is a lot of inertia in the business world. Most assumed that the Gaza war would last just two months, and then normality would resume.
But what if this thing goes on for years? Business will have to make a choice: continue buying from the Far East and charge higher prices to compensate for going around the Cape of Good Hope. Or buy from the Americas which involves a safe quick journey across the Atlantic.