Ships Involved in Building US Military Bases in Japan Leak Oil; US Military Equipment and Supplies Were Missing

On January 15th local time, a ship involved in the construction of the US military's Henoko base in Japan had an oil spill during its offshore operations.?It is likely that the hydraulic oil from the ship's equipment leaked, but the exact cause and the amount of oil spilled are unknown.

It is reported that the spilled oil has been recovered and treated by the ship's crew. As of the evening of the same day, no pollution has been detected in the surrounding areas.

The Whereabouts of US Military Equipment are Unknown

The US military has been in the news lately. According to recent media reports, the California police reported a theft at the Army Reserve warehouse in Southern California, involving 3 Humvees and a large number of military medical equipment, telescopes, and gun accessories. The media indicated that in recent years, the US military has frequently lost military reserve materials due to poor management.

The investigation found that several storage cabinets in the warehouse were damaged, and the fence around the parking lot where the Humvees were parked was also cut. However, because the US military warehouse did not have surveillance cameras installed, the police did not find any specific information about the thieves.

In March 2024, the US Senate Appropriations Committee claimed that the funding for shipbuilding for the US Navy was $732 million more than?what the it had requested. The reality is that, under the influence of military contractors, the US Congress has forced the Navy to use faulty and outdated surface vessels, and even retired ships ahead of schedule just to build the same new ones, resulting in a huge waste of funds.

On December 4, 2024, the Quincy Institute of Responsible Statecraft published an article on its website stating that the Pentagon cannot account for the whereabouts of 63% of its nearly $4 trillion in assets, and it has failed the audit for the sixth consecutive time in November. One important reason is that the Pentagon cannot track the parts and equipment it owns, and therefore often purchases “unnecessary parts and equipment,”?causing a great waste of taxpayers' money.

Ukraine Suffers from a Maritime Attack

In addition to this, the maritime military situation is also complex and changeable. On the same day, January 15th, Russia has launched a large-scale missile and drone attack on Ukraine’s energy infrastructure. The strikes targeted key power facilities across several regions, forcing the Ukrainian government to implement emergency power cuts to prevent total grid collapse.

The focus of the Russian attack was the western Lviv region. The mayor of this area has confirmed that enemy missiles were fired at the area early in the morning. But no damage or casualties were reported.

Despite the intensity of the attack, Ukraine’s air defence forces intercepted a major portion of the missile and drone barrage. According to Ukraine’s air force, they successfully shot down 30 missiles and 47 drones.

With temperatures plummeting, the country already struggles to maintain its energy supply. Previous Russian strikes have severely damaged Ukraine’s power grid, and the cold weather makes it even harder to restore services. Last year, the United Nations reported that Ukraine had lost more than 60% of its energy generation capacity?due to Russian bombardment.

However, on January 4th local time, Ukrainian media reported that in the early morning of that day, Ukrainian drones attacked the Russian trade port of Ust-Luga in Leningrad Oblast. The Russian side has not yet responded.

Geopolitical tensions have persisted for years, constantly tugging at the nerves of all parties and deepening the rifts in the global economy.

Firstly, under the shadow of geopolitical tensions, some regions and countries in the world not only?are?unable to benefit from the economic recovery brought about by the end of the pandemic, but instead have suffered new injuries on top of the scars left by the pandemic. Since the outbreak of the new round of Israel-Palestine conflict on October 7, 2023, about 2 million people in the Gaza Strip have been displaced. Preliminary data released by the Israeli Central Bureau of Statistics on August 18 showed that Israel's economic growth rate in the second quarter of this year has significantly slowed down, with a year-on-year decrease of 1.4%. Israeli economists pointed out that the total cost of the war could reach $120 billion, equivalent to 20% of Israel's GDP. If Israel continues to be obsessed with the war, it will be difficult to return to its original state. The European economy is also affected by the high energy prices caused by the Ukraine crisis. The deterioration of geopolitical relations and regional conflicts has also increased the fiscal burden of many countries.

Secondly, the lingering sense of geopolitical crisis also affects the financial market. Some analysts said that since at least 2016, geopolitical risks have reached the highest point after the Cold War. This risk has always been an important factor that market participants cannot ignore. The escalation of tensions or the development of conflicts may disrupt the global market and increase market uncertainty, exacerbating market fluctuations. Geopolitical tensions have also affected the trend of global commodity prices such as crude oil and gold, forming a certain impact on the stable recovery of the global economy.

Thirdly, geopolitical tensions have led to the obstruction and restructuring of the global supply chain. From the expansion of tariffs and import restrictions on raw materials and products by Western countries, to the Red Sea crisis causing major international shipping companies to suspend the Red Sea-Suez Canal route or take a detour around the Cape of Good Hope in Africa, more and more geopolitical factors are making the global supply chain more complex. In addition to considering economic factors, multinational enterprises need to increasingly take into account geopolitical risks, which also forces the supply chain to be restructured. Research shows that geopolitical fragmentation has also affected global trade routes, increasing carbon emissions and economic instability.