ATTACK ON PHILIPPINES RESUPPLY VESSEL, IN SOUTH CHINA SEA, MAY FURTHER RISE RISK LEVELS FOR EU-BOUND SHIPPING ALREADY DISRUPTED IN THE RED-SEA/GULF OF ADEN REGION, HELPING TBML

Already beset with multiple problems, due to the Suez/Red Sea situation, this week the Chinese Coast Guard attacked a Philippine resupply vessel enroute to that country's EEZ with dual water cannon, shattering the ship's windshield, and injuring crew members. Trillions of dollars of consumer goods transit this route every year, en route to European consumer markets, and if risk levels are judged to significantly increase, we may be looking at yet another trade disruption situation to add to existing problems in Suez, Panama, and the Black Sea.

The Philippines is a treaty ally of the United States, which has conducted extensive Freedom of navigation exercises in the South China Sea, and which may now choose to pursue an even more active role in confronting China's move to control the region, which it illegally claims is its sovereign territory, notwithstanding that there is no historical basis for the same, and which has interfered with lawful claims of many of its East Asian neighbors.

Will insurance rates rise, or routes to Europe from Asia be modified to avoid the region ? if this happens, you can bet that laundrymen running TBML programs will most certainly use this additional trade disruption to successfully move their clients' criminal proceeds within trade transactions.