Global Supply Chain takes another major blow in Red Sea crisis

Lencolo 2023-12-21 221

　　For the past 4 years, the global supply chain has been disrupted and immensely inconsistent for various reasons starting with Covid in early 2020.

　　This week, the ongoing crisis in the Red Sea forced most major shipping lines such as Maersk, CMA CGM, Hapag LLoyd, and others to stop their routes through the Red Sea and the Suez Canal.

　　According to Reuters, approximately 30% of global container trade passes through the Suez Canal! The percentage is critically high and right when inflation started to settle in most countries, another risk is imminent!

　　To put this into context, a ship from Europe to Asia on average takes 3 weeks passing through the Suez Canal and Red Sea. Now this will at least double, forcing ships to make a full tour of the African continent!

　　Longer transit times, higher costs, supply chain delays. How will this be acted upon?

Published from Hadi Shehadeh in Triwill group

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