"The Great Ship Jam of the Century"-The Suez Canal was blocked, causing logistics prices to soar

On March 23, Taiwan's Evergreen Shipping Group's ultra-large container carrier "Chang Ci" deviated and ran aground after entering the Suez Canal. The 400-meter-long hull jammed at both ends of the river embankment, causing the two-way channel to be blocked.

Since its construction and navigation in 1869, the Suez Canal has become the most important shipping channel connecting Asia, Africa, and Europe, and one of the busiest shipping routes in the world. It accounts for 14% of global seaborne trade, and 5% to 10% of global trade in energy commodities such as liquefied natural gas, crude oil and refined oil, as well as other bulk consumer goods such as clothing, furniture, and auto parts, will be transported through the Suez Canal. It is estimated that the hourly loss is 400 million U.S. dollars and the one-day loss is 9.6 billion U.S. dollars.

The Suez Canal incident affected the entire international import and export supply chain, especially for Chinese foreign trade companies. Cargo owners in these fields are most affected by the major goods transported from Asia to Europe and the United States via the canal, such as auto parts, clothing, electrical and photosensitive materials, and mechanical equipment.

Since the pandemic in early of 2020, global raw material prices have continued to rise, and logistics costs have also been rising. The blockade of the Suez Canal has severely affected global logistics costs in the short term, and at the same time pushed up the end market prices of commodities.

For clients who have been engaged in dealing global import trade for years, SURPASS company will be committed to assisting global customers to reduce the loss of logistics and commodity costs, and use a comprehensive Safety Inventory System to help clients create more stable prices and high-quality products, and expand New market areas.