Cargo Ships and the market of furniture.

With the recent hijackings of merchant cargo vessels around the world one has to ask: what impact if any do these crimes have on the economy and the very goods the vessels transport? While A Ball of Wax may not be a financial institution, our knowledge of our own industry is quite sound. Most furniture today is shipped from abroad aboard such cargo vessels as the ones recently hijacked. Although the majority of these ships come through shipping lanes from China some do in fact come from the east around the horn of Africa. Although the product itself is worthless to the pirates, it and the ship hold significant value with the manufacturer and freight company and can therefore be ransomed. As hijackings increase insurance will and has increased as well. Freight companies are forced to charge more per container to make up for the added costs. The furniture manufacturers would normally charge more for their furniture but here is where timing comes into play. Due to the current economic situation the manufacturers know that they can not charge more and still sell product. Most manufacturers are already losing money and are therefore being hit on both fronts. More than likely from what we can tell, the manufacturer's that currently produce furniture in the middle east will stop.