When Maritime Security Changes the Economics of Global Trade

Maritime security affects far more than the physical safety of commercial vessels. Disruptions to major shipping routes can increase voyage distances, insurance costs, freight expenses, delivery times, and the amount of capital required to keep international trade moving.

This analysis examines how maritime insecurity, rerouting, reduced effective vessel capacity, transport reliability, and security-related operating costs can change the economics of global trade for shipping companies, manufacturers, importers, exporters, insurers, and investors.