Possible Price Instability In Base Stocks Caused By Shipping Chokepoints
The shipping problems in key maritime routes like the Suez Canal and Panama Canal can have an impact on the petroleum market and, consequently, petroleum-based stocks. Here are some potential effects: Supply Disruptions: If a shipping bottleneck occurs in these canals, it can disrupt the transportation of oil and other petroleum products. This can lead to delays in deliveries, affecting supply chains and potentially causing shortages. Shipping Costs: Increased congestion or delays in these major shipping routes may lead to higher shipping costs. Read more…