"The Houthi attacks on Red Sea shipping that began in late 2023 never really ended. Even after tentative ceasefire arrangements in 2025, traffic through the Red Sea and Suez Canal remained structurally depressed."
"Routing around the Cape of Good Hope has added 6,000 to 11,000 nautical miles and 10 to 14 days to many Asia-Europe voyages, raising operating costs by up to roughly $1 million per trip in fuel alone."
"Before Russia's invasion of Ukraine, Europe sourced roughly 50% of its natural gas from Russia, mostly by pipeline. That supply chain collapsed almost overnight, forcing Europe to source energy from across the Atlantic."
The SonicShares Global Shipping ETF has benefited from disruptions in global shipping, particularly due to ongoing conflicts and geopolitical tensions. The Houthi attacks have severely impacted traffic through the Red Sea and Suez Canal, with volumes significantly lower than pre-conflict levels. Military actions have further complicated shipping routes, increasing operational costs and freight rates. Additionally, the shift in Europe's energy sourcing post-Russia's invasion of Ukraine has created a long-term demand for LNG tankers, solidifying the structural changes in the shipping industry.
Read at 24/7 Wall St.
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