1st Ship Abandoned After Red Sea Attacks: The potential gain for U.S. grain

The first ship has been abandoned after a Red Sea attack.

Bloomberg reports the strikes on the relatively small cargo ship were on the engine room and at the front of the vessel. There have been no reports of injuries and the United Kingdom’s Navy says the ship is continuing to receive military assistance. Officials say the extensive damage could lead the ship sinking in the Gulf of Aden.

The Red Sea accounts for 12% of all global maritime transit. Maersk, the second largest global ocean carrier, is advising its customers to prepare for this crisis to stretch into the second half of the year, which will include higher shipping costs and a longer overall transit time. Maersk is suggesting to avoid the Red Sea, which is causing a large percentage of oil, gas, bulk commodity and container vessels to sail thousands of miles around Africa out of precaution.

Despite the global disruption, this could bring more business to U.S. grain producers and make their product more competitive.

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