PrivacyMarginal Revolutionabout 2 hours ago
Shipping Route Disruptions Cost US Output
1 min read
A new paper uses satellite vessel tracking from 2016 to 2025 to measure U.S.-bound shipping disruptions. The 2021 West Coast crisis cost 0.69% of output and the 2023-2024 Red Sea attacks cost 0.35%. Naval protection generated benefits of 0.04-0.08% of output at a fiscal cost of 0.02%. Tariffs decongest taxed routes, offsetting conventional welfare costs.
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