Israel fighting Egypt, Jordan, and

Syria. And as part of Egypt's [music]

strategy, doesn't want Israel using the

Suez Canal, so they sink a bunch of

blocked ships here. So, that's the

operational effect, but here is the

strategic effect, the ones [music] that

actually count. If you look at before

the war, almost 90% of ships were 50,000

deadweight tons or less. [music] And so,

they could all make it through the Suez

Canal. But then, the Suez Canal is is

closed down from 1967 to 1972-ish.

So, that's a long time in world trade.

Well, look at the adjustments that take

place. By '72, you've got almost 30%

[music] of the number of ships are these

huge ships that never had existed

before. They're not going to make it

through the Suez Canal. [music] The Suez

Canal has since been widened, but still

the biggest ships can't make it through.

And so then, if you look at the cost of

sending [music]

oil from the Persian Gulf to Rotterdam

in the Netherlands, if you're going to

send it in an itty-bitty ship through

the canal, it might be a little over $13

per ton to send [music] it. Whereas, if

you're sending it in a big ship the long

way around Africa, I believe it's a

third that price.

>> [music]

>> So, um strategic effect of things,

unexpected. That overhead costs in

shipping is is [music] uh the size of

ship gets over a lot of it. It's not

about distance.