Subscribe to our free, weekly email newsletter!



The supply chain held hostage

By Patrick Burnson, Executive Editor
January 31, 2011

Irrespective of political concerns or positions, the current upheaval in Egypt must not result in the closing of the Suez Canal.

With anarchists planning a “million man march” in Cairo tomorrow, along with a nationwide strike, transport analysts are rightly concerned about a profound disruption in the global supply chain.

This vital economic link and resource is operated by what is left of the Egyptian government. It’s closure, if even temporary, could send oil prices soaring. Never mind what this will mean to container traffic.

So far, the Organization of Petroleum Exporting Countries (OPEC) has yet to determine if an emergency meeting is necessary this week, but by all observation, they should not wait long.

Meanwhile, the Suez Canal Authority is reporting “normal” container vessel traffic today, with approximately 50 ships deployed through this vital artery linking the Red Sea to the Med.

With tensions in the region growing and “anti-West” sentiment taking hold, our greatest fear now is that attacks may actually be made on shipping companies and on the Canal Authority itself.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Carload volumes were up 2.8 percent at 304,276, and intermodal volume for the week ending August 16 was up 5.4 percent at 270,316 containers and trailers.

Even though this data can be viewed as “old” in the sense that there is not a whole lot new to report about the port labor talks, it does a good job of looking into the mindset of shippers as talks continue.

Company officials said this service will be provided without any type of additional cost for customer shipments traveling from Ohio, Michigan, and Indiana, with expedited services available to customers outside of this area.

FTR says both spot rates and contract rates are heading up in a full capacity environment and with the fall shipping season rapidly approaching, it explained conditions for shippers could further deteriorate.

Read how others are using Business Process Management to achieve ERP success with Microsoft Dynamics AX. Download the free white paper now.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA