Blockage of Suez Canal has profound implications for UK supply chain, warns Logistics UK

As delays in picking up deliveries from UK ports filter through, members of Logistics UK’s Shippers’ Council raised concerns about the potential for seasonal stock to be delayed due to this incident. Shippers were also concerned about delays at UK container ports once the situation is cleared, as there will be a number of large vessels needing to unload stock in a short period of time, putting pressure on inland logistics.

Alex Veitch, General Manager for Public Policy at Logistics UK, said: “News that the stranded cargo vessel, MV Ever Given, has finally been refloated and is no longer blocking the Suez Canal is excellent news for global supply chains. However, with more than 300 ships stuck behind the ship waiting to travel through the canal, the impact of the incident will continue to be felt around the world for some weeks.

“Any delay to deliveries from the Far East will mean delays in picking up goods from UK ports for export, as well as slowing down deliveries into the UK’s supply chain. Goods affected by the delays will include seasonal stock for UK retailers, so gaps may start to appear unless the situation is resolved quickly.

“It is now vitally important to clear the ‘traffic jam’ of ships delayed in the Canal as quickly as possible, to restart the supply chain and minimise any disruption. However, the clearance of so many ships at one time could cause congestion at ports along the supply chain, with a resultant slowdown in port productivity.”

The Suez Canal usually serves as one of global trade’s greatest short cuts, saving ships on the Asia-Europe route a massive 6,000-mile circumnavigation around the African continent, compressing 12-day voyages into just 12 short hours.

However, all that changed on Tuesday 23 March 2021 when MV Ever Given, one of the world’s biggest container ships, ran aground in the canal following a power failure, wedging it diagonally across the waterway. The incident has exposed the vulnerability of this crucial trade route and the importance of resilient supply chains. By the end of last week, it was estimated that consumer goods, automotive parts and oil worth approximately $10 billion were stranded on hundreds of ships stuck on both sides of the Suez.

*www.logistics.org.uk/campaigns/maritime-logistics

Published On: 01/04/2021 14:00:29

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