- 5 months ago
Shipping routes face rising threats from piracy, terrorism and war. Military drones are a booming business for defense firms. Charging-station deserts are slowing the shift to EVs. And Pakistan’s Miss Universe, Erica Robin, is inspiring change.
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00:00The high seas are in turmoil.
00:05Pirates and terror groups are disrupting global trade,
00:08while wars and international tensions are turning key shipping lanes into risky passages.
00:16Many traditional routes are no longer safe, and the risks are rising.
00:23The impact on global business is serious, and it touches us all.
00:30Also coming up on the show, the global trade in military drones.
00:37Too few charging stations are slowing the shift to electric mobility,
00:42and a young woman from Pakistan is challenging centuries-old traditions.
00:47July 2025 in the Red Sea. An attack on the Magic Seas, a Greek-operated freighter.
01:04Islamist Houthi rebels arrive with helicopters, machine guns and rocket-propelled grenades.
01:09Crew members are killed and kidnapped. The ship is destroyed.
01:15Commercial ships are repeatedly coming under attack around the world.
01:19Many sea routes are threatened by terrorism and war.
01:22What are the consequences for global trade and commodity prices?
01:27Over 80% of global trade is handled by ships, and there were more than 100 incidents in 2024.
01:33So I think in my memory at least, since the time I've been involved in shipping,
01:38I have not seen so many regions in conflict, and adding this significant risk to shipping,
01:44and the seafarers' lives included in my career.
01:48A look at the four most endangered sea routes in the world.
01:52The Houthi rebels operate north from Yemen.
02:02The strait flows through Egypt into the Suez Canal and leads to Europe.
02:12Since 2023, there have been over 100 attacks by Houthi rebels in the Red Sea.
02:18They filmed their attacks as a deterrent.
02:28The economic damage to maritime trade is considerable.
02:33It is very difficult to give exact numbers, but roughly 15% of the trade passes through Swiss Canal.
02:40And we had estimated something between $9 to $10 billion worth of trade passing through Swiss Canal on a daily basis, which is a big number.
02:51Example number two, the Strait of Hormuz.
02:55It runs east of the Suez Canal.
02:58In spring 2025, the Iranian government threatened to fire on all commercial ships.
03:02This was triggered by the military conflict between Iran and Israel.
03:07The sea route is also of great importance to other neighboring countries, such as Iraq, the United Arab Emirates, and Oman, especially for the export of oil and natural gas.
03:18So it cuts both ways because it does impede the traffic of oil mainly.
03:27It's about 20% of oil that passes depending, of course, on what the share of each country in the area is.
03:33And it's also affecting the LNG trades eventually.
03:37Numerous conflicts have been smoldering in the region for decades.
03:42As a result, the Strait of Hormuz has repeatedly been the target of attacks on merchant ships, sometimes with drastic consequences.
03:51There were hundreds of ships' attacks, and unfortunately, tragically, there were hundreds of civilian seafarers who lost their lives.
03:59The traditional Asia-Europe shipping route goes through the Red Sea and the Suez Canal.
04:03But ships can take a detour around the Cape of Good Hope.
04:08But that's about 10,000 kilometers extra, takes 10 days longer, and costs a lot of money.
04:14That increases the cost approximately by a million dollars per trip for a vessel in fuel cost and other expenditure.
04:24Around 70% of all ships are now diverting via the longer route.
04:28Another consequence is that the cost of transporting one container has risen from an average of $3,000 to $15,000.
04:38It is not a question of cost at the moment. It's a question of safety.
04:43Example number three, South China Sea.
04:45China's conflict with the island nation of Taiwan.
04:48The threat stems from China's maneuvers off the coast of Taiwan.
04:52There are disputes over territorial waters between the two countries and also between Vietnam, the Philippines, Malaysia, Brunei, and Indonesia along the Singapore Strait.
05:02The Singapore Strait or the straits through Malaysia, which is called the Sundar Strait, those are the key choke points where the issues could be.
05:12But fortunately, those sea regions are controlled by Singapore, which is, as we all know, is a very neutral country.
05:19Example number four, the Black Sea.
05:21Ukraine and Russia have ports there and conduct their maritime trade across these waters.
05:27Russia has invaded Ukraine.
05:29The Black Sea is a war zone in the coastal areas.
05:32There are mines, drone attacks, and naval blockades.
05:35So the Black Sea is a big impact on the dry bulk, specifically grain, and on liquid bulk.
05:48Given the fact that they have set up a corridor alongside the coast, it's pretty safe at this moment to bring the cargo to where it is needed elsewhere in the world.
06:05The last attack on a grain ship in the Black Sea took place a year ago.
06:10Even so, captains must always be prepared for attacks on their ships and the threatened sea lanes.
06:25Since the war in Ukraine, drones have become a constant on the battlefield.
06:30They're used by Russia offensively and by Ukraine in defense.
06:37They're a lucrative business for the defense industry.
06:39The U.S. has long led the global drone market.
06:45But other nations are catching up, expanding both production and exports.
06:52Drones are central to modern warfare.
06:58They shape wars and conflicts worldwide.
07:01From India's conflict in Kashmir to Gaza and Ukraine.
07:07So who builds them?
07:08Who's an emerging player?
07:10And where is this headed?
07:11Drones, large and small are reshaping the battlefield.
07:20They conduct reconnaissance on enemy positions.
07:23There are small drones weighing just a few kilos with a range of about 5 to 20 kilometers that are used tactically in close combat.
07:32And there are larger drones that can travel much further, 100 to 200 kilometers, which are more like a lower priced missile or a cruise missile.
07:42Around the world, governments are increasing military spending.
07:51NATO members have agreed to allocate 5% of GDP to defense each year.
07:57Germany has pledged billions.
07:59The U.S. remains far ahead with $997 billion last year, followed by China and Russia.
08:07Germany spent $88.5 billion just ahead of India.
08:15What about drones?
08:16Who are the leading producers?
08:18It's not Europe.
08:21Only a few European manufacturers produce at scale, like WB Group's WarMate system in Poland.
08:30Demand is high, and currently no manufacturer is in a position to compete with China.
08:38That's the main issue right now.
08:42I'm convinced that the defense sector and drone development will continue to drive demand, in the U.S. and in Europe.
08:49Germany is using tax revenue to support Ukraine, including funding the drone production inside the country.
09:00It's the first time that Germany has directly financed weapons production in Ukraine.
09:06Germany is also manufacturing at home.
09:08Start-ups like Titan Technologies and Helsing, focused on AI-powered drones, are growing fast.
09:15The German military is investing at scale. Drones and AI are now essential capabilities.
09:23The major advantage is that the more decisions and actual maneuvers can be carried out by an AI-supported system,
09:31the easier it becomes to deploy drones on a larger scale.
09:34Because we don't need to invest time in training pilots.
09:42But the European industry is still in its infancy.
09:45The U.S. has the most military drones, followed by Turkey, Poland and Russia.
09:52Germany is catching up.
09:54In Asia, China is investing heavily.
09:58But Europe aims to avoid dependence, citing risks from Chinese software and spying.
10:03We're seeing countries like South Korea and Taiwan begin to position themselves for the European market.
10:13They're saying, we can manufacture components efficiently in Asia and help you reduce dependency.
10:19Just to give you an example, Taiwan, similar case to India, it faces an existential threat from China.
10:29So it's investing heavily to basically create 100% Chinese component-free drones.
10:40And in doing that, it's sort of creating a niche for itself.
10:46What about other Asian countries?
10:49India produces its own drones and has used them in recent clashes with Pakistan over Kashmir.
10:55But India and Pakistan are not among the world's leading manufacturers.
11:01If you look around Asia, just about every country has sort of an expanding, vibrant drone industry.
11:08Many companies can produce drones, but how do you get from producing a simple hobbyist quadcopter up into doing something more sophisticated, more advanced for defence purposes?
11:24So India's got lots of companies, but it hasn't yet sort of made that leap into the sophisticated, advanced drone stage yet.
11:34India can't yet compete with the US and China.
11:39What's clear, drones in warfare cause immense suffering.
11:43Yet sales and production are booming and drones will remain a growing feature of conflicts worldwide.
11:50Modern technologies run on one thing above all.
12:00Energy and electric mobility is no exception, but charging stations are still in short supply.
12:06In some regions, there's no infrastructure at all.
12:11Expansion has begun, but it's too slow.
12:14So some drivers are already turning back to fossil-fueled cars.
12:19When it comes to EVs and their charging points, we have a classic chicken-and-egg problem.
12:24Drivers won't buy electric cars if they don't have anywhere to charge them.
12:27But for companies, there's no money in building them in areas where there aren't a lot of EVs.
12:33Let's zoom in on the US.
12:35You'll find lots of these babies in cities, but you'll be pressed to find chargers that are open to all in areas where there aren't a lot of inhabitants or where people can't afford to buy electric cars.
12:44Just compare EV craze California with more than 17,000 public charging locations to rural North Dakota with a total of 96.
12:57You're way more likely to stumble into a charging desert here.
13:00A charging desert is an area where people cannot own an EV or cannot travel to because there are no chargers there.
13:07And a charging desert is very different than a regular desert. A charging desert can be downtown of a city that if you live there, you have no chargers.
13:18And it can be sometimes that you live there and there are chargers, but you cannot use them.
13:25That could be because they're installed by employers who lock up their parking lots at night, for example, or because they're broken.
13:31Harvard research found that in the US about one in five public charging stations do not work.
13:40But that doesn't mean that the US hasn't already made a lot of progress.
13:44It's really no different in how we think in some of our areas about just even gas or gas stations and other fossil fuel infrastructure.
13:53Alexia Melendez Martineau says it's important to remember that this also took a while to roll out.
14:01Back in the day, car owners used to buy their gasoline at drug stores, general stores or even get it home delivered.
14:09It took about 30 years for Americans to go from that to curbside pumps to a sizable network of actual gas stations.
14:16Filling stations sprang up by the thousand and a whole new industry in gas and oil was created.
14:22We have to be strategic about installing charging infrastructure in a way that's going to support our travel the way that we have, you know, with our gas infrastructure as well.
14:33The big difference between the two systems is gas mostly relies on these external structures.
14:39But the majority of EV charging is done here at home.
14:43At home chargers won't save you if you're just passing through, though.
14:45The main issue is to create these networks that if you do leave your home, you can get to the nearest city.
14:53And the goal in the U.S. is a charger station every 50 miles.
14:58The 50 mile goal was established under the Biden administration as part of the National Electric Vehicle Infrastructure Formula Program, a.k.a. NEVI.
15:06The $5 billion program launched in 2022 gave funding to states to set up charging points, particularly along major highways, because Biden's aim was to have a total of half a million public chargers by 2030.
15:21Just over 125 NEVI ports had been installed when the new administration suspended it.
15:26They don't go far. They cost a fortune, but they don't go far.
15:32See, you're in the middle of the desert. You say, you know, we're running low on electric.
15:35Do they have a charger around anybody? Are they charging?
15:38The good news is that states collected a lot of data in preparation for the program answering questions like
15:44Where should these chargers be going? How do residents plan to use them?
15:48And that data hasn't gone anywhere.
15:50If we zoom out of the U.S. a little bit and head over to countries that are leading the charging infrastructure game, we will see that state support is a massive part of this journey.
16:03Government commitment is very important.
16:06South Korea is a clear leader when it comes to V charging. It has the lowest number of electric cars per public charger.
16:13Some of Korea's budget went to placing more charging stations along highways, for example.
16:18And the government tackled parking by mandating that all new apartment buildings install EV charging stations in 5% of their parking spaces.
16:27Old buildings need to retrofit at least 2% of their parking spots.
16:31The country also has another ace up its sleeve. It's big businesses.
16:35Our economic structure is mostly, you know, big conglomerate driven.
16:42Conglomerates has every business under their name.
16:46You've heard a lot of these names before. Samsung, LG, Hyundai.
16:51One good example is Lotte, which owns hotels, supermarkets and department stores.
16:57Once they decide to deploy the EVs, they can put the EV chargers in their own captive market.
17:03So, you know, every building they have.
17:07The Netherlands is another top player.
17:1170% of our cars is parked in public space.
17:16So you have a very active dialogue with your citizens.
17:19You know, what do they find comfortable in the distance they need to walk to a charger from their home?
17:27In most Dutch cities and municipalities, you can even request a public charger near you if you don't have the possibility to power up your EV at home.
17:36We know which areas will have which kind of development of electric vehicles.
17:42So we can anticipate a bit on it.
17:46And we also have, of course, data. Data from existing chargers.
17:51So we also see if, for example, the occupancy of a charger is above 70%, we need to put a new charger next to it.
17:59Yet even Korea and the Netherlands are struggling in their rural areas.
18:02The business case is not yet okay in those rural areas.
18:07When there aren't enough people charging their cars in those areas, how are companies supposed to set up shop there?
18:13Well, in Korea, Nanghyeop is a group of agricultural cooperatives, kind of a national system for farmers.
18:19It owns places that become hubs in these rural areas, supermarkets and banks.
18:24And now it's working to install its own EV chargers there.
18:27In the Netherlands, municipalities also joined together to make a more salient business case.
18:30One big concession, which becomes attractive for commercial operators.
18:36So they start being interested then.
18:39It is maybe three charging stations in this village and five in that village.
18:44But take 40 villages and you suddenly have something of substance.
18:49It will take many years to make money.
18:51That's why we need government to help.
18:53That's exactly what Nevi did in the US before it was paused.
18:56Now that it is in limbo, all eyes are on private companies to see how they're stepping up.
19:01Because many people, especially those living in rural areas, have a lot to gain from a stronger EV presence.
19:08They often drive farther.
19:11They often have older vehicles that are larger, that are also less efficient.
19:16And so when you think about switching to an EV, those cost savings on fuel and maintenance can be incredibly impactful for rural households.
19:23But that jump will only become possible if they have enough places to plug in, even outside their homes.
19:30She's from Pakistan and made it into the top 20 at Miss Universe 2023.
19:46Rare in a country still shaped by strong traditions.
19:48That's especially true for a young woman navigating a deeply patriarchal society.
19:57Erica Robin pushed ahead.
19:59Her success is remarkable.
20:01And her story inspires women everywhere.
20:03I think I was very young. I was 16, 17.
20:22Because you're tall, you know, you look good.
20:25Your features are very good.
20:26So you shoot us from the salon.
20:28What motivated me?
20:29Actually nothing.
20:30It was just something that I did shock.
20:31As a professional.
20:32I had zero knowledge about it.
20:33So shock me before I shoot.
20:52My father was against it.
20:54Because again, what do people say?
20:55What do people say?
20:58So it was just their safety concerns.
21:01It's not good.
21:02It's not good.
21:03It's not good.
21:05I think minorities' acceptance here is a little bit less.
21:12Hi, this is Erica Robin from Karachi, Pakistan.
21:14And I'm your first ever Miss Universe Pakistan.
21:19Miss Universe's idea has never come to mind because I knew that it's not on Pakistan's list.
21:26But in 1994 or 1997, when Shishmita Sen was crowned.
21:33So in that year, because I liked it, I saw it a lot.
21:37To become the first Miss Universe was never there.
21:41I think I never thought about it.
21:44But I think it was written in the destiny.
21:46And it was a robust boom.
21:47I don't know where it came from.
21:49If I think about it, it still feels like a dream.
21:51Pakistan!
21:52Pakistan!
21:53Pakistan!
21:55moon
21:58Security
22:00When this was announced...
22:04The news was out now, for some time.
22:07Tara 1920
22:08So, after that, when the news was out, it was a lot of fun for some time.
22:17Twitter, everywhere was trending news.
22:23And the tagline was shameful for me.
22:28We reject Miss Universe Pakistan, we won't accept it.
22:31So, people didn't understand that.
22:41Also, I think, coming from a one-person minority, there was no acceptance.
22:45People thought, okay, she's a Christian, so she's not going to respect the Islamic culture.
22:56How would she represent us? How would she respect the culture?
22:59Because, you know, there is a swimwear around there.
23:05So, I was getting back-lash mass, and I, myself,
23:09I wasn't so comfortable that I was wearing a bikini on stage.
23:21Burkini, okay, the word is that I had to say the first time, Burkini.
23:25So, it's an alternative of a bikini, you can say.
23:33I asked them that, is there going to be a swimwear around?
23:36So, they said, yes, but it's not necessary that you have to wear a bikini.
23:39If you're not comfortable, you can wear a burkini.
23:41And that's the time that I said, yes, I want to do it.
23:55I want to do it.
23:56I want to do it.
23:56It's not necessary.
23:57I want to do it.
23:58I want to do it.
24:00Last year, the 200 application was made.
24:03And this year, everyone knows that it's real, it's authentic.
24:09And Pakistan, Karachi, Lahore, Islamabad, and every person,
24:14I mean, every age group has applied this year.
24:19And I was really happy that, okay, now it's accepted.
24:22And because I really wanted to say that there are minorities from my heart.
24:31I'm glad that majority of Pakistani girls have applied.
24:37So I was really happy for it.
24:38With time, many things have changed.
24:44Now, if you look at any Miss Universe or the previous Miss Universe,
24:49they have a title with a purpose.
24:51It doesn't mean that if you're intelligent, if you're beautiful,
24:53or you know how to talk, how to walk, you will get the title.
25:05And I think being the first ever Miss Universe in Pakistan
25:08has really made me feel the importance of being a true Pakistani.
25:18I'm very happy that I'm the first, but not the last.
25:22Also, I think that the opportunity that I have had,
25:25it was a beautiful experience.
25:26One thing that I would cherish for the rest of my life.
25:38A woman who's a role model and inspiration.
25:43A global military drone market.
25:48And the challenges of e-mobility.
25:51Our topics on this edition of MADE, DW's business show.
25:54Thanks for watching and see you next time.
25:57Bye bye.
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