Being in the international trade game, I tend to look at international stories and politics in a different light than most people. Political unrest and conflict in various areas around the globe cause something called supply risk. I saw a story this morning about pirates off the coast of Somalia seizing a North Korean cargo vessel.
At first blush you can smile and laugh and think to yourself that anything the kicks Kim Jong Il in the teeth a little bit is good for the rest of the world. However if we take a moment and think what might be in that cargo ship and what could be falling into the hands of Islamic fundamentalist pirates we may begin to worry.
Piracy in the waters off Somalia and traveling through the waterways that surround the islands of Indonesia is rampant. Ships and good are routinely seized and held for ransom. My question is, what happens if the wrong ship falls into those hands? Not a pleasant thought.
****UPDATE: The North Korean crew retook their boat when the U.S. Navy showed up.
No 1 of Consequence