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Container backlog, global supply chain disruption from Suez Canal crisis could take months to clear
- Dozens of container ships were stuck when the Ever Given ran aground in the canal on March 23, with specialist rescue teams taking almost a week to free the vessel
- Container shipping companies were already contending with disruptions caused by the coronavirus and a surge in demand for retail goods, but the latest impact could still last into the second half of the year
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A backlog of container ships carrying consumer goods has grown in some key strategic ports after a near week-long blockage in the Suez Canal, adding to ongoing disruptions to global trade, industry sources said.
Dozens of container ships were stuck when the Ever Given ran aground in the canal on March 23, with specialist rescue teams taking almost a week to free the vessel.
The suspension of sailings through the waterway left shipping companies – including container lines – with millions of US dollars in extra costs, which were not covered by insurance.
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“The blockage of the Suez Canal will increase the negative impact on global supply chains in the coming weeks, as the availability of empty equipment, particularly in Asia and Europe, will be affected,” Reiner Heiken, chief executive of US headquartered Hellmann Worldwide Logistics, told Reuters.
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Why is Egypt’s Suez Canal so important?
Why is Egypt’s Suez Canal so important?
Container shipping companies, carrying products ranging from mobile phones to designer goods, have been contending for months with disruptions caused by the coronavirus pandemic and a surge in demand for retail goods that led to wider logistical bottlenecks including in top consumer market the United States.
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