Taiwan military escalation sparks congestion fears

Taiwan military escalation sparks congestion fears

The deadlock between the US and China over Taiwan is threatening trade disruption as China’s military drills and missile tests commence.

Traffic at Taiwanese key ports could severely disrupt the global supply chain, as the Taiwan strait represents one of the world’s busiest shipping lanes.

Trade routes to Europe, Middle East run through the strait; just this year, 88 per cent of the largest container ships transited its waters according to Bloomberg.

According to data from VesselsValue, some 256 containerships, tankers, and bulkers are racking up in Taiwanese territorial waters, with a further 60 estimated to arrive before the conclusion of the drills on 7 August.

© VesselValue

Currently, 308 ships have a predicted destination of Taiwan.

© VesselValue

The news comes as port congestion globally is continuing to be exacerbated by a dangerous mix of labour shortages through strikes and inland logistics capacity.

China has started a series of ballistic missile tests targeting waters close to ports in Taiwan in response to a visit by US House Speaker Nancy Pelosi.

Pelosi’s visit to Taiwan has been deemed as a violation of China’s claim of sovereignty over Taiwan.

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