Paul McKinley

An estimated 12% of global trade worth more than $1 trillion traverses the Red Sea each year. When Houthi rebels started attacking commercial vessels in November 2023, ocean carriers began rerouting container ships around Africa’s Cape of Good Horn rather than through the Suez Canal on voyages from Asia to Europe. That greatly increased travel time and costs. As of March of this year, shipping through the Red Sea was still down 70% from before the attacks began, according to The Economist, with many ocean carriers still avoiding the Bab el-Mandeb Strait, which separates the Red Sea from the Gulf of Aden and the Arabian Peninsula. Maritime Industry Caught in the Crosshairs Houthi rebels launched attacks on ships in the Red Sea in response to Israel’s military operations in Gaza. The Houthis attacked more than 100 cargo ships between November 2023 and January 2025. The attacks, with missiles and drones, sunk two vessels and killed four sailors. In late October 2024, a headline in gCaptain read, “Red Sea Is Now So Dangerous Even NATO Warships Are Avoiding It.” “The United States Navy continues to send warships through the Red Sea, but its mission to protect merchant ships – Operation Prosperity…

Special Guest Blog Post written by Demostenes (Demo) Perez, Photo by Rikin Katyal   After more than 25 years in logistics and supply chain management and having led over 200 regional distribution projects, I’ve come to realize that the questions people don’t ask are often the most important. Throughout my career, I’ve worked with global multinationals, emerging brands, and family-run businesses. I’ve helped move everything from underground mining equipment to high-fashion goods, from pharmaceuticals and food to toys and chemicals. Some supply chain models I helped design are still thriving today; others were shut down after a few years. Many didn’t even make it past the drawing board. In that time, I’ve had the privilege of collaborating with logistics professionals from nearly every corner of the world and making lifelong friends in the process. Yet no matter the company size or product type, I still wish more people would ask these five questions before launching or scaling their operations in Latin America: 1. How well do I understand the diversity within Latin America? “Latin America” is often treated as a single market. It’s not. Logistics conditions in Mexico are completely different from those in Brazil. Colombia, Argentina, Peru, and Chile…