Tuesday, March 30, 2021

Ship stuck in Suez Canal freed

After almost an entire week of blocking traffic within the Suez Canal, the Ever Given was refloated and passage through the canal is available again. The Ever Given ship headed to the Great Bitter Lake, where it will be inspected for potential damage. An investigation will also be held into the cause of the ship getting stuck as well.  Meanwhile, the canal itself has a backlog of over 370 ships, with even more ships expected to arrive. Chairman of the Suez Canal, Osama Rabie, is expecting the backlog to be cleared within three days, though experts have claimed that it could take as long as ten days. With around a total of 9 billion dollars per day of delay in transit, workers rushed to get the ship freed as soon as possible, and after a few failed attempts, successfully did so on Monday. Though supply is still temporarily slowed as distribution of goods through ships are delayed, a much longer disruption predicted to increase the cost of shipping in fuel and time due to taking a different route, and as a result, the cost of goods to consumers, was averted. However, this incident reveals a critical flaw in the supply chain. According to William Lee, chief economist at the Milken Institute, "This is a warning about how vulnerable our supply chains are and how the just-in-time inventory techniques that have been so popular have to be rethought," similar to how the covid-19 pandemic has disrupted the manufacturing of goods in China. 

Consider the following:
a. What are some other vulnerabilities within the supply chain?
b. How can companies or countries mitigate or avoid future incidents such as these (besides not getting stuck in a canal in the first place) in the future? 
c. How do incidents like these impact the average consumer or yourself? 

4 comments:

Michael said...

Luckily, incidents like these are uncommon, and unlikely to occur again in the future. This particular incident will luckily have no effect on us, and a minimal effect perhaps on consumers in Europe who amazon primed a package from Asia. (It might arrive a few days late). Luckily the high tides caused by the full moon were effective in helping to dislodge the ship from the side of the canal. The funny thing is that people on the internet were so quick to make jokes and games about this incident. One of such games can be found here: https://eric-c-wilder.itch.io/suez-canal-bulldozer

There was also another game my dad was playing where you could stick the Ever Given any where on earth. He got it stuck in the foster city lagoon which it barely fit into. Overall, there have been many friendly/ funny responses to this incident online.

Michael said...
This comment has been removed by the author.
Anonymous said...

I think with this particular situation we weren't personally affected but I think Europe and Asia were definitely affected. Though a couple days doesn't seem like a lot for one ship, it wasn't just one ship that it affected, it was over 180 all which either had to wait out the block or go around and take extra days, costs and dangerous routes to get back on track. Though we might not have been personally affected yet, the blockage could potentially rise gas prices since shipping companies had to spend extra thousands of dollars to either wait or take a longer route, shipping prices could do up and that could inflate prices on our end. Luckily this doesn't happen very often and the ship was freed fairly quickly so these instances might not occur, but we still don't know what could come of this and how this might affect us for future container shipping methods.

Anonymous said...

I think a blockage like this created a sort of domino effect because when one ship got blocked, every other shipped was back up as well. I think companies can try to prevent this problem from occurring again (which is unlikely since this was a very rare circumstance) by maybe trying different routes out, and maybe having a better schedule so not all the ships are going through the same route all at once. I think situations like this affect us because we do not get the items we ordered on times, which causes people to look to the company to complain, which may lead to their sales to decrease.