As the situation in the Red Sea worsens, U.S. Secretary of Defense Lloyd Austin announced a 10-nation coalition focused on security in the region. Trade through the Red Sea accounts for 10% of total global trade, so disruption in the region could lead to higher prices for certain goods globally. FreightWaves CEO Craig Fuller joins Yahoo Finance to provide insight into this situation and what it means for the global economy and potentially global stability.
Fuller analyzes the potential impact: “We are in a whole new world, and supply chains are at the forefront of it. For the past 30 years, civilian shipping has had little impact in terms of moving global trade. If this continues to become a bigger problem, , “It’s going to change the reconfiguration of global supply chains. Really…the country most affected by this is, frankly, China, because China is so dependent on global trade. We need peaceful trade lanes to move products.”
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