‘Ever Given’ is Free, but the Cargo Industry Still Faces Congestion
Though Ever Given has officially been dislodged, the expectation of resumed passage through the Suez Canal has the maritime cargo industry bracing for the next phase of the plight: over 300 cargo ships racing to ports around the world competing for docking capacity.
According to data collected by supply chain visibility company project44, “consumer goods will be delayed as the canal incident creates worsening congestion at ports.” This is especially crucial to ports in Jeddah, Rotterdam and Singapore, and the following industries are predicted to be hit the hardest:
- Sports equipment
- Consumer electronics
As reported by Rich Thompson, JLL’s Global Head of Supply Chain & Logistics Solutions, “ocean shipping accounts for 80% of the movement of goods and there are only two ‘shortcuts,’” the Suez Canal and the Panama Canal.
Given this information, Jett McCandless, CEO of project44, advises continued monitoring of the implications of the Suez Canal obstruction.
Source: Supply Chain Management Review