Choked: How Weaponized Geography is Breaking Globalisation and Driving Permanent Inflation cover art

Choked: How Weaponized Geography is Breaking Globalisation and Driving Permanent Inflation

Choked: How Weaponized Geography is Breaking Globalisation and Driving Permanent Inflation

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The era of unhindered "freedom of navigation" is coming to a close. As critical maritime chokepoints—such as the Strait of Hormuz, the Bab el-Mandeb Strait, and the Malacca Strait—are increasingly weaponized by both state and non-state actors with asymmetric capabilities, global trade rules are rapidly fracturing. This report explores how these geographical vulnerabilities are transitioning from global public goods into toll gates of geopolitical extortion.

Driven by physical blockades, exorbitant transit fees, and surging insurance premiums, a permanent "stealth tariff" has been embedded into the global logistics network. This disruption is forcing a fundamental paradigm shift for multinational corporations: abandoning the traditional "Just-in-Time" efficiency model in favor of a highly redundant "Just-in-Case" supply chain.

Consequently, this structural rewiring of globalization is baking a persistent "geopolitical risk premium" into global commodities, driving permanent structural inflation, and locking macroeconomic policies into a "higher-for-longer" interest rate environment. In response, the world is witnessing the dawn of a massive capital expenditure (CapEx) supercycle, directing trillions toward alternative land corridors, Arctic routes, and resilient infrastructures in a race to bypass these increasingly fragile maritime bottlenecks.

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