Ryan Petersen

Because how energy is upstream of everything, and more importantly, food, the fertilizer production coming out of that region.

And it's planting season, so it's a very bad timing for the world's agricultural supply chains.

But the Persian Gulf, from a container shipping standpoint, is a cul-de-sac.

You don't need to go in there unless you're delivering to there.

And there's only...

The stat that we're looking at is 0.6% of the world's container ships are currently stuck inside the straits.

So it's kind of a rounding error.

It's not a big deal for container shipping.

Now, fuel prices have gone up 87% for ocean bunker fuel, the fuel that powers the ship.

So that's, you know, there's definitely, it's an energy story is what I would say rather than a container shipping story.

Yeah, it is.

It is.

As I said, the prices have gone up about 50%.

And the United Airlines CEO said earlier this week or end of last week, he said that their modeling, the jet fuel price increases is going to cost them $11 billion.

Wow.

And he said that in their best year ever at United, they made $5 billion in profit.

Which tells you they're going to, the model basically says they have to increase plane ticket prices by 30% just to pay the fuel.

So just to give you a sense of like how this is upstream of everything else.

And that's really everything.

I mean, we don't think about it, but plastic is all made from petroleum products, like huge percent pharmaceuticals and healthcare, cosmetics, consumer goods, paint.