Photo by Rinson Chory on Unsplash
Have you ever got stuck in a traffic jam?. I know it is frustrating. Though it just a traffic jam for you, have you ever imagined what happens when the whole world supply channel gets stuck or blocked?
A big Yes! anyhow this came true. A 400ft giant cargo ship of Evergreen Marine Corporation got stuck in the Suez canal. A scene created on march 18, 2021 where the halting of ships befalls due to diagonal stuck ship. Suez canal is one of the busiest trade routes of the supply chain that connects Europe and Asia.
The main reason for it was loaded with containers and struggled through winds. The strong winds slammed the ship apart from the tracked path. Also, why am I telling you this? this will let you obtain a better understanding of the obstacles of the supply chain. The supply chain often gets distressed for various reasons. Natural or man-made calamities can be a big reason. The main thing to understand over here is what effects get visible after the blockage of the canal. Sure, these mistakes will emphatically help the supply chain industry to scope in/out the alternative with better solutions.
The first effect would be the hike in price due to blockage. About 12% of global trade use the Suez canal. On an estimate near about 50 cargo ships, every day passes the canal. Due to the blockage, many ships were anchored at the same spot. Thus blockage becomes a ripple factor for trade.
Secondly, it will raise delays in delivery. Around 420 ships waited to cross that channel for six days. Though the effect will be felt in the coming months. This will definitely affect 7% of the world’s oil, 12% of world trade and 30% of container-based ship traffic. The visible result surely going to impact crude oil, electronics items and others.
The third effect can be a shortage of certain products or price hikes on every product with more tax imposed on them. Determinedly, Several ships have been rerouted and this will surely impact our pockets.
So getting on to the conclusion, obviously, the supply chain should be stretched at least where it falls narrow. Every business is risk effecting, but for a supply chain, a dialogue with new possibilities is desperately required by learning new reforms from the past and implementing them in future.
