The Suez Canal disruption in 2021, when the Ever Given became stuck for just six days, had a significant impact on global supply chains. The current crisis has already lasted significantly longer.
Bypassing the Red Sea will therefore inevitably lead to disruptions in the supply chains. Companies waiting for goods from East Asia should urgently negotiate alternative transportation options – the cost may be higher, but lost production or empty shelves would be far more expensive.
After the supply chain problems we have faced in recent years, manufacturers and retailers will have contingency plans – but the problem is that there are few alternatives to shipping, which everyone now wants to access. This will further increase the prices of alternative means of transport.
Also read: Intermodal transport, new routes – these are the reactions to the attacks in the Suez Canal
Freight rates for shipping have already risen significantly because shipping companies are passing on their additional costs for insurance and fuel to their customers. Affected companies will examine whether and to what extent they can pass on their costs to their customers and consumers. This could mean a renewed surge in inflation in Europe.
Even if the Red Sea is fully usable again, the difficulties for shipping companies will continue for several months. The six-day closure of the canal in 2021 threw the precisely timed schedules of ports in the Mediterranean and North Sea into disarray for months. This further exacerbated the container shortage and freight rates remained at high levels. Given the uncertain situation, we have to prepare for long-term problems in sea freight and significantly higher price levels.
2024-01-08 08:53:53
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