00:00Can we start with the operational consequences here?
00:03And can you talk us through a picture of what you see?
00:05The transit times that have had to be extended now
00:08because of the difficulties getting through that very tight Strait of Hormuz.
00:12What's going on now?
00:14Well, good morning, John.
00:16Not much.
00:17There are thousands of vessels that are stuck in the Arabian Gulf
00:22and just to the east outside of the Strait of Hormuz.
00:26About 114, 115 container ships, balanced bulkers, tankers,
00:32and those energy ships that you've talked about in the previous segment.
00:36The companies do not have an interest right now,
00:40nor is there enough money for insurance to transit those ships through the Strait.
00:47Risking the life and limb of crew is just not an option for the private sector companies today.
00:52So, Gene, are you saying that for many, they're just doing a hands-off approach?
00:56And have canceled a lot of transits.
00:58That's right.
00:59On the container side, John, the Middle East, and especially those countries in the Gulf,
01:04think of the United Arab Emirates, Bahrain, Kuwait, Iraq.
01:08They're a consuming public much like we are here in the United States.
01:12So, exports from Asia of furniture, footwear, clothing, electronics, and appliances have all but halted.
01:19Those factories in Asia are trying to segment that product,
01:22move it to the side so they can continue servicing us here in the United States,
01:27Latin America, European continent, and the UK.
01:30It's a matter of time to see if that starts gumming up the works at ports through Asia.
01:35But so far, supply chains moving here to the United States are smooth,
01:39yet the cost of the fuel has doubled over the last 10 days.
01:44All right.
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