All it took was a gust of wind and an apparently inattentive crew that was moving too fast in the Suez Canal to disrupt global shipping. About 12% of all international trade moves through the 120-mile long Suez Canal. More than 230 ships are in a massive traffic jam that is growing exponentially at a loss estimated at $400 million per hour. There are 20 livestock ships stuck in the canal and the live animals onboard could soon perish if the ships cannot move.
Freeing the massive container vessel is no easy task. There’s a risk that the vessel could capsize, blocking the canal for many months or longer.
This event, like the COVID-19 pandemic was not expected, but it was foreseeable. Imagine if the Panama Canal also became blocked. It’s time that a proactive and smarter approach is taken when it comes to the movement of goods. Technology and strategies exist to improve this situation.
Global supply chain and logistics risks are not going away, in fact, they’re increasing. The economic benefits that once motived mass offshoring of manufacturing and supply chains no longer exist. That’s why companies should localize their manufacturing, logistics and supply chains, and many have decided to do just that.