Cargo Ship Blocked Suez Canal, $400 Million Lost Per Hour
About two weeks ago, a cargo ship named the Ever Given got stuck in the Suez Canal. The blockage created by the ship caused traffic through the canal to come to a complete halt. While it may not seem like a big deal, 12% of the worlds exports travel through the Suez Canal each year, so the blockage equated to about a $400 million loss per hour.
A sandstorm is largely to blame for the ship running aground within the canal. Visibility was greatly reduced and wind gusts reached 31 mph causing the ship to hit one of the banks within the canal. Also, the push to build larger ships has been problematic because as the ships increase in size, the infrastructure around them isn’t keeping up.
The true extent of the blockage may not be felt for some time, but it eventually will. One worry is that the worldwide chip shortage will become worse hindering vehicle production. Further, an ongoing container shortage due to Covid-19 may be exacerbated and the schedules for other cargo ships will be thrown out of line.
Events across the world are beginning to outline issues within infrastructure around the world. The Texas power outage is a prime example of a downfall within infrastructure and now the blockage in the Suez Canal. Demands are increasing and the infrastructure surrounding our sensitive systems will need updating.