Sal, I never knew how much I'd appreciate the news I get from your subject matter. You've increased my knowledge base. That's wealth no one can dismiss. Thank you.
@@wgowshipping I second op’s comments. I work in healthcare and your news commentary puts supply chains in perspective. Your channel should pop up on everyone’s news feeds! It beats mainstream media.
I was a land-loving Naval reservist on a Naval Air Station in the past. Never set foot on a ship. I have listened to Sal since the inception of this channel and it has opened my eyes to the generally ignored world view of ocean commerce and the power struggle of legit and nefarious players on that world stage. Thank you, Sal.
Sal, you are making an impact throughout the news. Today I heard Victor Davis Hanson talking about freedom of the seas and shipping. These guys are listening to you!
It seems that many “viewers” are paying attention… including those up the chain of command. In some ways, the truth being more widely available and having a high quality consumable summary… improves consistent shared objectives and to some degree, accountability and responsible action. KEEP UP THE GREAT WORK SAL!
freedom of the seas or artic/ice-cap's or space ( like the moon/mars ect ) is a practical matter as there's no good way of defending/daily-policing/politics-ect something like a flooded-fort/under water base or collecting taxes-ect USA has Monroe doctrine and salle/video/MAGA/founders is right if a ship wants help with pirate's-ect in the northern western hemisphere ( middle of atlantic and or pacific ocean's, AK/hi/other-dissonant holding's are a mistake as is over extended-politically and military wise, Mexican's was also a mistake on passing-on fully statehood option ) it needs to have USA sailor's/man'd ( passengers also need to be mostly USA passport holders and or -treaty'd-neighbours ie Canada/Mexican-to-panama_canal-zone or gulf's-island's like Florida keys's or cuba-ect ) and owners-ect and not Egypt...
I stumbled across this channel a few months back think as a former sailor it might be interesting. I can honestly say it has turned into a wealth of information and education I never expected. Sal, today, I place you right up there with Robert Reich as my trusted sources for better understanding of geopolitics and global economics. I truly believe a structured compilation of your video material should be offered as a credited course for any good college economics program. At 65, I find it amazing how mch we can still learn when the material is presented in a Realtime assimilation manner. Thank You!
For all things maritime, nobody brings us the news and analysis like Sal. Thank you, for taking the time to bring us the very latest news and analysis. Watching from North Carolina, USA. ❤❤
What the ..... Ship!!!?? Wow! What an episode #109! You are the lone voice in the wilderness. The mood of too many people now is "nations are a thing of the past" 'cause we can all be friends. ... "Can't we all just get along?" Thank you for your diligence. Cheers.
Hey Sal, did you see the news about a USN senior petty officer who was courtmartialed for setting up a Starlink connection and wifi network aboard a warship that was underway? Navy Times had a report about it on 3 Sep.
Godsend? Praying hands? Really? There are no ghosts, fairies, elves, demons, or gods. Grow up would you please, join the mature world of adults who don't spread fantasy tales.
Sal, you are amazing. Most folks in the US are blind to what's going on. Thank you for your experience and vigilantes. We all are better for your support! Thank you!
We all are. And when the costs of shipping goes up, it increases inflation throughout the country. Shipping rates skyrocketed earlier this year. The decrease in shipping rates is nowhere near the increase we dealt with earlier this year. I think Sal might have a hard in the till, because I can’t imagine anyone wanting to see the rates increase, especially knowing that it increases the rate of inflation as well. For all the whining we’ve heard about inflation and how the Democrats have been doing a lousy job, the notion that an increase in shipping rates , especially after they’ve already skyrocketed, is preposterous.
@@mudman6156 "For all the whining we’ve heard about inflation and how the Democrats have been doing a lousy job, the notion that an increase in shipping rates , especially after they’ve already skyrocketed, is preposterous." Learn to proofread. This sentence makes no sense. And, yes, the Democrats have been doing a lousy job. Too.
Hi Sal, fantastic video! freight rates, security, unions, etc. But why do you say the Chinese isn't disrupting Freedom of Navigation? I've seen them clash with the Philippines Navy. Btw i joined your Patreon cos i know UA-cam takes a huge chunk.
Freedom of Navigation presumably has to do with trade. The Philippines Navy doesn't engage in trade. So the connection isn't as obvious as you apparently think it is.
LOVE the longer videos Sal great job😎.. I know it's tough for you to do those from what you've said about free time , I appreciate ALL the news on shipping you give us btw, I would love if you could do some more videos on US Naval ship building and the MASSIVE ISSUE it is for us and our National Security due to our "severe lack of ability" to build pretty much ANY Warship, Commercial ship and even Submarine in any normal amount of time and on or under budget..😟. It's so sad at our day and age what America has come to. We USED TO be the country most others wanted to be like, our factories and ship building industry was top of the line where we could pump out defense products & weapons, naval and commercial ships/subs in months and even weeks granted a lot of this was during war time but even before and a bit after we did it and then our idiot Presidents over the decades have forced ship building firms to close or be absorbed into just a few big ones and shrunk our Navy down to numbers that are laughable smh. I know I saw a video of yours that quickly mentioned a few changes we could make but if you could do some "in depth" videos on this and what/how to fix it would be awesome!(when you get a chance). Thank you for everything you do on your channel Sal, keep up the good work!!👍👏⚓🚢
Thank you, Sir. You do a great service to us by educating us about the very complex issues we all face as Americans! The increase in anxiety, not so much😂
Sal, as a result of this episode I reviewed your list of previous episodes to see if I should look at any ones again. I stumbled on the World War Zero episode. I missed it because of its title and graphic. That is one scary episode. If I look at the idea of your course and add the intolerance people and nations seem to be exhibiting towards each other, what was scary becomes terrifying. We appear to be in a World War Zero era again! I will follow your course.
HEY! I just realized your somewhat local to me, hope someday I can attend an open lecture etc. You are MESMERISING to any science--y info geek. Love to sail the Bay.
Great reporting Sal! I always assumed that the reason ships were registered in these small countries was to save money. But the fact that these countries have nothing to protect these ships with when bad times happen, such as what is happening now and leaves many ships open to attack. This does not seem like a smart way to operate. I would think that losing a ship in an attack would be a lot more expensive than registering in a country that can protect the ship. I have no idea what registration costs in different countries, but the large shipping companies may want to do a cost analysis on this.
Registration also includes having to follow the registration country's labor laws, including things like labor unions. As a result of that, American or European flag ships can cost 2-4x as much to crew as flag-of-convenience ships.
@@TheMysteryDriver The US is of course protecting no one from the Houthis. Nor should it. Why should the US taxpayer do that? Presumably any value provided by US flagging would be reflected in insurance rates. I haven't seen anyone mention any such differential.
@@gandydancer9710 well you're wrong. You can easily look it up. The US basically agreed to do this in the 40s to create NATO, push international trade and get people to use the petrodollar.
Sal, Don't forget the "ILA" also represent the Long Shoremen in the Great Lakes also. And a strike starting on 10-1-24 that encompasses the East Coast will also GREATLY EFFECT all Bulk Carriers coming into the Great Lakes also. And the "Fall" is the busiest time of the yr. As they try to lay in as much freight into these ports before the Locks into the Great Lakes shut down for there winter season (January-March) This would be VERY BAD for Hundreds of Thousands of Independent Owner Operators (Truck Druvers) that rely on a lot of this freight to get them threw the winter months.
If I recall correctly, the East Indian Company had its own navy to protect their shipping! Maybe the shipping industry should look into it! Rambling thoughts of an old hermit. (North Korea captured the USS Pueblo and shot down a Navy EC-121, killing the entire crew. We forget our history. We only have a total of 11 aircraft carriers!)
@@randomnickify That's by law. Man may change law. Don't forget, at times in history, for example during WWII, merchant ships were armed, making them warships. Convention (VII) relating to the Conversion of Merchant Ships into War-Ships in 1907 established the rules for this. That said, these may be amended or a signatory to a convention may denounce it, exit, and allow its merchant ships to operate as its new laws establish.
The "only" in that last sentence is doing some heavy lifting, given that _the entire rest of the world_ has a total of _eight_ aircraft carriers, all of them significantly smaller than any given one of ours.
@@user-bt8vn3dj6o You are not going to have armed ships going into foreign countries. No more than you're going to have airliners packing sidewinders. Do you really expect to sail into Tokyo or New York with a bunch of weaponry?
This is a very great channel. I am a Kenyan and I was wondering where can I get info on shipping and maritime for Africa. I am into maritime management too.
While global stability has many factors, the seas, commercial, pleasure, military, or fishing rights are certain to be included in what we consider a safe world. Keep up the good work.
Paperwork and procedures ( at either loading or unloading) showing tariffs have been properly paid by all shippers and the apparatus to actually render those payments over to the government (and to handle disputes as to what is or isn't owing and/or due under those tariffs either from the shippers of the goods themselves or the shipping company handling the shipping) must be attended to continuously as new goods are shipped in from overseas; that paperwork and those procedures are all more work that the shipping company must attend to while moving the same volume of goods as before those tariffs were introduced - so therefore shipping costs rise. The analysis differs - there's less fresh expense - if they are simply tweaking an already well-established system of tariffs though, like simply varying the percentage size of the tariff.
They affect the rates paid to shipping professionals because the importers are so strapped for cash that they just cuts costs everywhere, and they have been absolutely robbing folks in the shipping industry to afford those costs. In top of that, these Tarrifs Trump imposed are the reason prices are so high at the point of sale. Uninformed Americans think it’s Biden, and I’m so happy Kamala Harris finally stated publicly the mess Trump handed them, because I’ve been trying to explain this to people for years. When these tariffs are increased, the consumer always eats the cost; the folks who sell you products are not gonna pay you to buy them; they’re gonna charge you!
@@filmbuffo5616 That's Ignoramus Economics. Shipping rates are a results of supply and demand and tariffs can lower demand, thus lowering rates. But lowering demand can also lower supply, over time. So tariffs can both increase AND decrease shipping rates. It's not monotonic.
Thank you. Invaluable and extensive (also managing to navigate the treacherous waters of politics). In the current modern era, we need functioning shipping supply chains - not only to avoid hyperinflation, but to survive.
Tariffs like Corporate Taxation ends up being paid by the end users. This is why I am a firm believer in buying USA/local supplier. I try to buy American so that will see the citizens get the jobs.
_'Tariffs like Corporate Taxation ends up being paid by the end users.'_ This is true. But, it only captures part of the picture. De-industrialisation has a cost that's picked up by the taxpayer as well. Higher unemployment has knock-effects such as crime, substance abuse, loss of wealth such as house value when a one-company town collapses, etc. Our price tags don't capture these costs. For much of US history it imposed tariffs on imports because the economy did not rely on exports unlike many other industrial countries like UK, Germany, France, and Japan. In the late 1800s exports by value no more than 10% of US GDP and decreasing as domestic consumption grew greatly and industrialisation expanded. Prior to the Great Depression exports were about 5% of US GDP in 1928. From 1970 to 2000 it ranged from 5.5 to 11.1%. Today it's about 11 per cent, in large part due to renewed energy exports.that make up about 11% of exports by value. Presently, exports are about 48% of Germany's GDP, 21.5% of Japan's, 32% of UK's, and 35% of France's. Of the people who benefit most from free trade, it's the managerial and credentialed class, lawyers, government employees, and academics who face little to no foreign competition yet gain much from low prices and greater variety of goods and services. This is not to say working class people also see some benefits as lower prices improve quality of life, but they are the ones who face the highest risk of job loss and the cascading effects from that due to foreign competition.
Tariffs and income taxes are two very different things. a 30% tariff on a $100 wholesale item adds $30 and is likely to be passed on. That same $100 item under a 30% corporate rate is taxed completely differently, and might not be taxed AT ALL. It depends on the business expenses, and if a company barely breaks even one year, it pays little to no taxes no matter how many $100 items they buy from a supplier/importer. If a company (like an auto manufacturer) imports $3,000 of parts/components on a BoM $15,000 cost car and I raise income taxes from 20% to 30%, each carmaker doesn't know what additional amount their competitors will pay because their costs/efficiencies/production will be different, and income taxes don't "force" you to make up any shortfalls: if GM happens to have too high costs in 2026, then they pay the IRS nothing because they break even... no income = no income tax. If that same company experiences a tariff increase by 10%, then they MUST pay it and they know everyone else in the industry is also paying it too. GM, barely breaking even, must pass it on because it's baked into the cost of goods and unlike income tax there's no "deductions" for tariffs, and Ford increases their prices when they see GM do so too. In most cases income taxes get mostly absorbed by shareholders, and tariffs get mostly passed onto consumers.
It’s not gonna make a difference, because when you buy American you’re still paying for the parts to build American supplies from another country! US inflation is so out of control this past century that it is not sustainable for American manufacturers to solely buy American.
@@stevie586 Witch is why taxing the income of overseas companies (which have profits or they wouldn't still be in business!) is better than tariffs hitting the American consumer. Simply require any foreign company which wants to sell it's goods in the US to pay X% of their gross revenue to the US government. IF they refuse they can't do business in the US. China needs US consumers more than US consumers need Chinese goods.
Shareholders & top management should accept the new reality that workers want a bigger share in profits. The strike at Boeing should serve as an example. But changing attitudes after 40 years of shareholders & CEOs taking 95% of profit growth will not be easy.
It took me a year or two of listening to Sal before I finally realized that Cosco was not Costco. Now everything makes more sense! I was so confused how an American store had such a giant shipping arm. Hopefully it gives somebody a laugh. 😂
As a British possession I think that officially that the UK and Royal Navy are responsible for protecting ships flagged in the Cayman Islands, along with all the other Crown possesions
Sal - I think you need to do an episode/video on the importance of Maritime Colleges. I don't think the vast majority of young folks realize it is a viable career path. I sure as hell didn't! Maybe my life would have different. Let's give that option to others. Bill O'
Port Authorities should have provisions in their contracts regarding equipment installed on the cranes - cellular modems that can be used for remote communication - were not documented in any contract between US ports and Chinese crane maker ZPMC. Additionally, their Information Security departments should be inspecting all newly installed equipment and equipment after maintenance to ensure there is no way to access the cranes remotely. This is cybersecurity 101. It doesn’t matter if the hacker is a nation state or a teenager, the port has to mitigate the risk.
Excellent report - many important subjects. Tariffs have been a part of US economic policy since the begining of the country. CPI averaged during 2016 thru 2020 only 1.93%. Very low, especailly compared with the last four years. Tariffs are easily demagogued by the politicians and the media (not Sal M.). Trumps emphasis on trade global trade, specifically with China, went well beyond inexpensive sneakers imported from China: IP theft and China's extreme mercantilist trade policy. It all depends on "who's ox is getting gored".
Trump's economic policies are no better than Kamala's. And who are these so-called economic advisors coming up with these ideas? Most of his last administration has nothing to do with him.
A couple of questions does empty container pay fair? So what will happen if container ships will not carry empty containers and we MADE specialize ships JUST for the empty containers. Will this speed up loading and downloading container ships? Because there will be no shuffle of containers. Address this issue, please.
Women on war...I remember Mrs Thatcher didn't hesitate to take on argentina. Putin and the houthis need to dial it back...a lot. Ok, so great episode Sal, thanks for the considerations, I hope Mrs Harris will come across it as there is a lot to think about there post election sir!
The worlds shipping lines were perfectly happy to abrogate their entitlement to naval protection by registering their ships outside of western countries, it's not so surprising that the Panamanian and Marshal Islands Navies haven't intervened in the Red Sea. (Wrote this comment before you got to the end.). Realistically the flag off the back of the ship needs to have some sort of relationship to sense again.
Would you do a piece on the 'Jones act' & it's ongoing effects on the us shipping industry. Do you feel there should be less little rules to make things difficult for shipping in general? 👍
As Sal declared in the introduction, this was a depressing video (although it did have humor). I particularly liked the last story, the decline, or whatever, of freedom of the seas. I think I now have a better understanding of the true complexity of this issue. That's not to say there's a road map anywhere of what to do about it. If we're waiting for the Marshall Islands to build aircraft carriers, we'll be waiting for a long time.
This channel have transformed from me from not knowing a ship about shipping to actually starting to get a grasp of the topic, thanks Sal!
Would you say it's making you... give a ship?
I'm sorry. In my defense, you started it. OK, technically Sal started it. :)
Don't worry once you figure it out it changes lol. Ever evolving industry
Me too! I always took it for granted!
Ok, just stop that ship right now.
@@ZGryphon Don't blame me for all this ship talk!
Sal, I never knew how much I'd appreciate the news I get from your subject matter. You've increased my knowledge base. That's wealth no one can dismiss. Thank you.
Wow, thanks
@@wgowshipping I second op’s comments. I work in healthcare and your news commentary puts supply chains in perspective. Your channel should pop up on everyone’s news feeds! It beats mainstream media.
Titan: ''getting to the bottom of what happened' is the best summary I've heard yet.
That joke crushed it.
ba doom tish.
I’m so glad I found you. I had no idea what I didn’t know or understand about shipping. Thank you for seeing the need for education on maritime issues
I was a land-loving Naval reservist on a Naval Air Station in the past. Never set foot on a ship. I have listened to Sal since the inception of this channel and it has opened my eyes to the generally ignored world view of ocean commerce and the power struggle of legit and nefarious players on that world stage. Thank you, Sal.
Sal, you are making an impact throughout the news. Today I heard Victor Davis Hanson talking about freedom of the seas and shipping. These guys are listening to you!
"Sources say that ..." What sources? The host of this channel.
Made national news with an interview in Australia
It seems that many “viewers” are paying attention… including those up the chain of command.
In some ways, the truth being more widely available and having a high quality consumable summary… improves consistent shared objectives and to some degree, accountability and responsible action.
KEEP UP THE GREAT WORK SAL!
freedom of the seas or artic/ice-cap's or space ( like the moon/mars ect ) is a practical matter as there's no good way of defending/daily-policing/politics-ect something like a flooded-fort/under water base or collecting taxes-ect
USA has Monroe doctrine and salle/video/MAGA/founders is right if a ship wants help with pirate's-ect in the northern western hemisphere ( middle of atlantic and or pacific ocean's, AK/hi/other-dissonant holding's are a mistake as is over extended-politically and military wise, Mexican's was also a mistake on passing-on fully statehood option ) it needs to have USA sailor's/man'd ( passengers also need to be mostly USA passport holders and or -treaty'd-neighbours ie Canada/Mexican-to-panama_canal-zone or gulf's-island's like Florida keys's or cuba-ect ) and owners-ect and not Egypt...
I stumbled across this channel a few months back think as a former sailor it might be interesting. I can honestly say it has turned into a wealth of information and education I never expected. Sal, today, I place you right up there with Robert Reich as my trusted sources for better understanding of geopolitics and global economics. I truly believe a structured compilation of your video material should be offered as a credited course for any good college economics program. At 65, I find it amazing how mch we can still learn when the material is presented in a Realtime assimilation manner. Thank You!
Reich has a ton of bad takes
For all things maritime, nobody brings us the news and analysis like Sal. Thank you, for taking the time to bring us the very latest news and analysis. Watching from North Carolina, USA. ❤❤
What the ..... Ship!!!?? Wow! What an episode #109! You are the lone voice in the wilderness. The mood of too many people now is "nations are a thing of the past" 'cause we can all be friends. ... "Can't we all just get along?" Thank you for your diligence. Cheers.
Cannot even express how much valuable insight there is here is this video. Thank you Sal.
Hey Sal, did you see the news about a USN senior petty officer who was courtmartialed for setting up a Starlink connection and wifi network aboard a warship that was underway? Navy Times had a report about it on 3 Sep.
Outstanding work. Thank you.
From a cybersecurity professional thanks for both the objective analysis and humorous anecdotes!👍👍
Thank you. Excellent video.
You are God send for the news on the shipping because you have news about shipping that no one else is talking about 🙏🏽🙏🏽🇺🇸
Godsend? Praying hands? Really? There are no ghosts, fairies, elves, demons, or gods. Grow up would you please, join the mature world of adults who don't spread fantasy tales.
@@johnsmith1474 "Godsends" don't actually require a belief in God.
Agree, disagree, whatever... this channel is extremely relevant
Period
Sal, you are amazing. Most folks in the US are blind to what's going on. Thank you for your experience and vigilantes. We all are better for your support! Thank you!
In which Sal calls out everyone, everyone deserved it, and no one was spared. Great video as always!
I buy stuff so I am a consumer of ocean shipping.
We all are. And when the costs of shipping goes up, it increases inflation throughout the country. Shipping rates skyrocketed earlier this year. The decrease in shipping rates is nowhere near the increase we dealt with earlier this year. I think Sal might have a hard in the till, because I can’t imagine anyone wanting to see the rates increase, especially knowing that it increases the rate of inflation as well. For all the whining we’ve heard about inflation and how the Democrats have been doing a lousy job, the notion that an increase in shipping rates , especially after they’ve already skyrocketed, is preposterous.
@@mudman6156 "For all the whining we’ve heard about inflation and how the Democrats have been doing a lousy job, the notion that an increase in shipping rates , especially after they’ve already skyrocketed, is preposterous."
Learn to proofread. This sentence makes no sense.
And, yes, the Democrats have been doing a lousy job. Too.
This is fantastic programming, just chock, full of facts and figures of which I know nothing about but enjoy learning about the shipping world
Hi Sal, fantastic video! freight rates, security, unions, etc.
But why do you say the Chinese isn't disrupting Freedom of Navigation? I've seen them clash with the Philippines Navy.
Btw i joined your Patreon cos i know UA-cam takes a huge chunk.
Freedom of Navigation presumably has to do with trade. The Philippines Navy doesn't engage in trade. So the connection isn't as obvious as you apparently think it is.
@@gandydancer9710 thanks!
By watching your channel, I have discovered that we should all give a ship about shipping.
Your explanation of reshuffling alliances put me in mind of collegiate football teams switching conferences
Yeah, Sal explains it perfectly.
Not me.
Yes, Sir. You are the BEST OF THE BEST. THANK YOU for your time and effort.
Thankyou. Much food for thought. Your bibliography is most welcome.
much obliged dude, this is a unique news source I really appreciate. Sounion is an oil lamp
LOVE the longer videos Sal great job😎.. I know it's tough for you to do those from what you've said about free time , I appreciate ALL the news on shipping you give us btw, I would love if you could do some more videos on US Naval ship building and the MASSIVE ISSUE it is for us and our National Security due to our "severe lack of ability" to build pretty much ANY Warship, Commercial ship and even Submarine in any normal amount of time and on or under budget..😟.
It's so sad at our day and age what America has come to. We USED TO be the country most others wanted to be like, our factories and ship building industry was top of the line where we could pump out defense products & weapons, naval and commercial ships/subs in months and even weeks granted a lot of this was during war time but even before and a bit after we did it and then our idiot Presidents over the decades have forced ship building firms to close or be absorbed into just a few big ones and shrunk our Navy down to numbers that are laughable smh. I know I saw a video of yours that quickly mentioned a few changes we could make but if you could do some "in depth" videos on this and what/how to fix it would be awesome!(when you get a chance).
Thank you for everything you do on your channel Sal, keep up the good work!!👍👏⚓🚢
the last rant you had was about the Red Sea , get going bud i love it you are right !! love it!
What about the Red Sea?
Thank you, Sir.
You do a great service to us by educating us about the very complex issues we all face as Americans!
The increase in anxiety, not so much😂
Sal, as a result of this episode I reviewed your list of previous episodes to see if I should look at any ones again. I stumbled on the World War Zero episode. I missed it because of its title and graphic. That is one scary episode. If I look at the idea of your course and add the intolerance people and nations seem to be exhibiting towards each other, what was scary becomes terrifying. We appear to be in a World War Zero era again! I will follow your course.
Next video dropping on Monday.
HEY! I just realized your somewhat local to me, hope someday I can attend an open lecture etc. You are MESMERISING to any science--y info geek. Love to sail the Bay.
Wow. A lot of bad news Sal. Anything good happening?
Thanks for this channel, and your coverage of the Baltimore tragedy.
Thanks for the heart ❤️ Sal!
You are an amazing story teller!
Thank you so much!
#109 Loved the movie ! PT 109 . Happy Weekend.
Fascinating. You raise some really important questions.
Kiitos!
Fascinating! So much good info. Thank you!
Glad it was helpful!
Very sobering video; thankfully Bab al-Mandeb is mentioned at the end.
Great reporting Sal! I always assumed that the reason ships were registered in these small countries was to save money. But the fact that these countries have nothing to protect these ships with when bad times happen, such as what is happening now and leaves many ships open to attack. This does not seem like a smart way to operate. I would think that losing a ship in an attack would be a lot more expensive than registering in a country that can protect the ship. I have no idea what registration costs in different countries, but the large shipping companies may want to do a cost analysis on this.
Registration also includes having to follow the registration country's labor laws, including things like labor unions. As a result of that, American or European flag ships can cost 2-4x as much to crew as flag-of-convenience ships.
The US protects international shipping from allied countries as well.
Thank you. That explains a lot.
@@willythemailboy2
@@TheMysteryDriver The US is of course protecting no one from the Houthis.
Nor should it. Why should the US taxpayer do that?
Presumably any value provided by US flagging would be reflected in insurance rates. I haven't seen anyone mention any such differential.
@@gandydancer9710 well you're wrong. You can easily look it up.
The US basically agreed to do this in the 40s to create NATO, push international trade and get people to use the petrodollar.
Sounds kind of cartel-ish to me. Thanks to Sal, I have also gone from not knowing ship about shipping to learning a lot!
HUGE amount of info, Sal! Great show!
Great Video! Thanks for the
Information
Hard to believe now, but 30 years ago I was working on the design of container cranes being built in the UK to send to China.
P.S.: Especially enjoyed the last 10 min. Fair critique of the system and motivations.
The Cayman Island Navy consists of a rowboat, a length of knotted line, and a parrot named Steffan.
Dam* you been a busy fella! Thanks!
When I first read the headline, I though that the RCCL MS Freedom of the Seas caught fire and/or sank.... Oops. 🤦♂🤷♂ Keep up the good work sir! 👍
Thanks!
Sal, Don't forget the "ILA" also represent the Long Shoremen in the Great Lakes also. And a strike starting on 10-1-24 that encompasses the East Coast will also GREATLY EFFECT all Bulk Carriers coming into the Great Lakes also. And the "Fall" is the busiest time of the yr. As they try to lay in as much freight into these ports before the Locks into the Great Lakes shut down for there winter season (January-March) This would be VERY BAD for Hundreds of Thousands of Independent Owner Operators (Truck Druvers) that rely on a lot of this freight to get them threw the winter months.
Excellent analysis sir
You go saul ? Great sow. Great info!
"Great sow"? Male hogs too?
If I recall correctly, the East Indian Company had its own navy to protect their shipping! Maybe the shipping industry should look into it! Rambling thoughts of an old hermit. (North Korea captured the USS Pueblo and shot down a Navy EC-121, killing the entire crew. We forget our history. We only have a total of 11 aircraft carriers!)
According to Google only sovereign nations can have warships.
@@randomnickify That's by law. Man may change law.
Don't forget, at times in history, for example during WWII, merchant ships were armed, making them warships. Convention (VII) relating to the Conversion of Merchant Ships into War-Ships in 1907 established the rules for this. That said, these may be amended or a signatory to a convention may denounce it, exit, and allow its merchant ships to operate as its new laws establish.
The "only" in that last sentence is doing some heavy lifting, given that _the entire rest of the world_ has a total of _eight_ aircraft carriers, all of them significantly smaller than any given one of ours.
"Only" 11, LOL.
@@user-bt8vn3dj6o You are not going to have armed ships going into foreign countries. No more than you're going to have airliners packing sidewinders. Do you really expect to sail into Tokyo or New York with a bunch of weaponry?
I appreciate all you do and I found this video to be extremely fascinating and educational.
This is a very great channel. I am a Kenyan and I was wondering where can I get info on shipping and maritime for Africa. I am into maritime management too.
I just cruised on Freedom of the Seas, out of Miami, last year. Nice ship!
While global stability has many factors, the seas, commercial, pleasure, military, or fishing rights are certain to be included in what we consider a safe world. Keep up the good work.
We don't live in a safe world, so that sentence is meaningless.
Well done, Sal. Very well done!
Thanks Sal. Good update.
Explain how tariffs increase shipping rates. What is the mechanism. Thanks.
Paperwork and procedures ( at either loading or unloading) showing tariffs have been properly paid by all shippers and the apparatus to actually render those payments over to the government (and to handle disputes as to what is or isn't owing and/or due under those tariffs either from the shippers of the goods themselves or the shipping company handling the shipping) must be attended to continuously as new goods are shipped in from overseas; that paperwork and those procedures are all more work that the shipping company must attend to while moving the same volume of goods as before those tariffs were introduced - so therefore shipping costs rise.
The analysis differs - there's less fresh expense - if they are simply tweaking an already well-established system of tariffs though, like simply varying the percentage size of the tariff.
They affect the rates paid to shipping professionals because the importers are so strapped for cash that they just cuts costs everywhere, and they have been absolutely robbing folks in the shipping industry to afford those costs. In top of that, these Tarrifs Trump imposed are the reason prices are so high at the point of sale. Uninformed Americans think it’s Biden, and I’m so happy Kamala Harris finally stated publicly the mess Trump handed them, because I’ve been trying to explain this to people for years. When these tariffs are increased, the consumer always eats the cost; the folks who sell you products are not gonna pay you to buy them; they’re gonna charge you!
@@filmbuffo5616 That's Ignoramus Economics. Shipping rates are a results of supply and demand and tariffs can lower demand, thus lowering rates. But lowering demand can also lower supply, over time. So tariffs can both increase AND decrease shipping rates. It's not monotonic.
Thank you. Invaluable and extensive (also managing to navigate the treacherous waters of politics). In the current modern era, we need functioning shipping supply chains - not only to avoid hyperinflation, but to survive.
The US does not need a "functioning supply chain" through the Red Sea.
like it when you really get wound up over real issues!
Tariffs like Corporate Taxation ends up being paid by the end users. This is why I am a firm believer in buying USA/local supplier. I try to buy American so that will see the citizens get the jobs.
_'Tariffs like Corporate Taxation ends up being paid by the end users.'_
This is true. But, it only captures part of the picture. De-industrialisation has a cost that's picked up by the taxpayer as well. Higher unemployment has knock-effects such as crime, substance abuse, loss of wealth such as house value when a one-company town collapses, etc. Our price tags don't capture these costs.
For much of US history it imposed tariffs on imports because the economy did not rely on exports unlike many other industrial countries like UK, Germany, France, and Japan. In the late 1800s exports by value no more than 10% of US GDP and decreasing as domestic consumption grew greatly and industrialisation expanded. Prior to the Great Depression exports were about 5% of US GDP in 1928. From 1970 to 2000 it ranged from 5.5 to 11.1%. Today it's about 11 per cent, in large part due to renewed energy exports.that make up about 11% of exports by value. Presently, exports are about 48% of Germany's GDP, 21.5% of Japan's, 32% of UK's, and 35% of France's.
Of the people who benefit most from free trade, it's the managerial and credentialed class, lawyers, government employees, and academics who face little to no foreign competition yet gain much from low prices and greater variety of goods and services. This is not to say working class people also see some benefits as lower prices improve quality of life, but they are the ones who face the highest risk of job loss and the cascading effects from that due to foreign competition.
Tariffs and income taxes are two very different things. a 30% tariff on a $100 wholesale item adds $30 and is likely to be passed on. That same $100 item under a 30% corporate rate is taxed completely differently, and might not be taxed AT ALL. It depends on the business expenses, and if a company barely breaks even one year, it pays little to no taxes no matter how many $100 items they buy from a supplier/importer.
If a company (like an auto manufacturer) imports $3,000 of parts/components on a BoM $15,000 cost car and I raise income taxes from 20% to 30%, each carmaker doesn't know what additional amount their competitors will pay because their costs/efficiencies/production will be different, and income taxes don't "force" you to make up any shortfalls: if GM happens to have too high costs in 2026, then they pay the IRS nothing because they break even... no income = no income tax. If that same company experiences a tariff increase by 10%, then they MUST pay it and they know everyone else in the industry is also paying it too. GM, barely breaking even, must pass it on because it's baked into the cost of goods and unlike income tax there's no "deductions" for tariffs, and Ford increases their prices when they see GM do so too.
In most cases income taxes get mostly absorbed by shareholders, and tariffs get mostly passed onto consumers.
It’s not gonna make a difference, because when you buy American you’re still paying for the parts to build American supplies from another country! US inflation is so out of control this past century that it is not sustainable for American manufacturers to solely buy American.
@@Joe-ij6ofyou are 100% correct and I keep trying to explain this to people, even folks who consider themselves to be intelligent!
@@stevie586 Witch is why taxing the income of overseas companies (which have profits or they wouldn't still be in business!) is better than tariffs hitting the American consumer. Simply require any foreign company which wants to sell it's goods in the US to pay X% of their gross revenue to the US government. IF they refuse they can't do business in the US. China needs US consumers more than US consumers need Chinese goods.
Thanks for great updates!
Sam you are so correct about the flagging!!
great show buddy keep it up!!
Who's Sam?
Good work Sal.
Shareholders & top management should accept the new reality that workers want a bigger share in profits. The strike at Boeing should serve as an example. But changing attitudes after 40 years of shareholders & CEOs taking 95% of profit growth will not be easy.
Workers wanting a bigger share of profits isn't a "new reality". Workers (and managements) have ALWAYS wanted a bigger share of profits.
Great show Sal!
Thank you Sir...
Thank you! Stay awesome Sal!
Thankyou, very informative.
Sal is on fire today 🔥
Great job with info thank you
Water levels in the Mississippi river are very low again and that is causing trouble for barges trying to move the grain harvest.
That is another story in the works as the Danube is near flood stage.
It took me a year or two of listening to Sal before I finally realized that Cosco was not Costco. Now everything makes more sense! I was so confused how an American store had such a giant shipping arm. Hopefully it gives somebody a laugh. 😂
Could you discuss in detail the logistics impact that would result from an east coast port strike
You need to fire that one man that did not delete the one world tax off this video. Thank you for what you do.
Heard new oilers were purchased and they are high speed versions to keep up with the modern fleet. 20 total. Have to be good news.
You heard wrong. There are no oilers which keep up with warships.
@@gandydancer9710 Newer ones can but are not in use yet. you are not up to date.
@@martineastburn3679 I repeat, there are no oilers which keep up with warships.
It's a completely impractical idea.
@@gandydancer9710 NONE this second. The new fleet is about to come forth. You are unaware.
Thanks for the great information. People better buy their Christmas presents now!
As a British possession I think that officially that the UK and Royal Navy are responsible for protecting ships flagged in the Cayman Islands, along with all the other Crown possesions
Who says they are? If the UK doesn't get the revenue from flagging the ships why should it take responsibility for them?
Sal - I think you need to do an episode/video on the importance of Maritime Colleges. I don't think the vast majority of young folks realize it is a viable career path. I sure as hell didn't! Maybe my life would have different. Let's give that option to others.
Bill O'
Port Authorities should have provisions in their contracts regarding equipment installed on the cranes - cellular modems that can be used for remote communication - were not documented in any contract between US ports and Chinese crane maker ZPMC. Additionally, their Information Security departments should be inspecting all newly installed equipment and equipment after maintenance to ensure there is no way to access the cranes remotely. This is cybersecurity 101. It doesn’t matter if the hacker is a nation state or a teenager, the port has to mitigate the risk.
I just looked at Marine Traffic. I see the Arctic Ocean loaded with tankers, assuming this is part of the shadow fleet😮
This is around Russia not Canada
I'm a merchant mariner I was in Baltimore port and there is really hardly any ships coming in and out
Sal your great thank you
Very informative. Thanks!
Hostage to a system. Interesting to watch.
Excellent report - many important subjects. Tariffs have been a part of US economic policy since the begining of the country. CPI averaged during 2016 thru 2020 only 1.93%. Very low, especailly compared with the last four years. Tariffs are easily demagogued by the politicians and the media (not Sal M.). Trumps emphasis on trade global trade, specifically with China, went well beyond inexpensive sneakers imported from China: IP theft and China's extreme mercantilist trade policy. It all depends on "who's ox is getting gored".
Your reply is informative. Mahalo
vilifies china as trading partner, has all merch manufactured in china. hmmmm
Trump's economic policies are no better than Kamala's. And who are these so-called economic advisors coming up with these ideas? Most of his last administration has nothing to do with him.
extreme mercantilist trade policy - wow that is an accusation from a capitalist country :)
@@WALTERBROADDUSthe swamp is alive.😅
"getting to the bottom is important here". Thats excelent.
A couple of questions does empty container pay fair? So what will happen if container ships will not carry empty containers and we MADE specialize ships JUST for the empty containers. Will this speed up loading and downloading container ships?
Because there will be no shuffle of containers.
Address this issue, please.
What will the empty container carrier do once it has delivered its load?
Women on war...I remember Mrs Thatcher didn't hesitate to take on argentina. Putin and the houthis need to dial it back...a lot.
Ok, so great episode Sal, thanks for the considerations, I hope Mrs Harris will come across it as there is a lot to think about there post election sir!
The worlds shipping lines were perfectly happy to abrogate their entitlement to naval protection by registering their ships outside of western countries, it's not so surprising that the Panamanian and Marshal Islands Navies haven't intervened in the Red Sea. (Wrote this comment before you got to the end.). Realistically the flag off the back of the ship needs to have some sort of relationship to sense again.
Just incredible
Sal, do you prefer to use tea leaves, crystal ball, or tarot cards (hope you don't get the death card in the reading)to predict ocean freight rates?
Salvador. You have online classes? Thank you 😊
Would you do a piece on the 'Jones act' & it's ongoing effects on the us shipping industry. Do you feel there should be less little rules to make things difficult for shipping in general? 👍
Sal, Simon Whistler is the host of Megaprojects and several other UA-cam channels. Simon Winchester is an author/historian. They aren't related.
And you don't hear anything from our government media. Thanks again Sal
Let's get that video up about the Panama Canal. I thought that was a neat video he did but I'm also clueless
As Sal declared in the introduction, this was a depressing video (although it did have humor). I particularly liked the last story, the decline, or whatever, of freedom of the seas. I think I now have a better understanding of the true complexity of this issue. That's not to say there's a road map anywhere of what to do about it. If we're waiting for the Marshall Islands to build aircraft carriers, we'll be waiting for a long time.
Thanks Steven.
Good show. You hit it all.
Thank you Sal.