The 2021 Suez Canal blockage caused by the Ever Given container ship had significant economic ramifications, with losses reaching approximately $89 million for global shipping. This study, conducted by a European research team, highlights the vulnerability of global supply chains and the vast financial and environmental costs of such disruptions. The research also provides a framework that can be applied to assess other ongoing maritime crises.
Economic and Environmental Consequences of Disruptions
The study focused on the costs of disruptions in maritime logistics, such as inventory holding and environmental impact. Inventory holding was the largest expense, amounting to $76 million, while increased carbon emissions accounted for additional costs. The blockage caused a rise of 44,574 tonnes in carbon dioxide emissions due to detours and longer shipping routes.
Rerouting Ships and Its Costs
Due to the blockage, many ships were forced to reroute through the Cape of Good Hope, leading to increased operational costs. This shift not only resulted in financial losses but also contributed to higher fuel consumption and longer travel times. Additionally, the Suez Canal Authority suffered a loss of $5.9 million due to the detours.
Methodology for Analyzing Future Crises
The research methodology used in the study is not limited to the Suez Canal blockage. It can also be applied to other maritime disruptions, such as those caused by attacks on ships in the Red Sea. The framework can help analyze the additional costs of rerouting ships, highlighting the urgent need for alternative transport routes and contingency plans in case of future disruptions.
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Source: University Of Gothenburg
