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

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 4.4 percent from August 2013 to August 2014 at $100.6 billion.

As expected, global trade dipped from August to September but still saw annual gains, according to data issued this week by Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

Transportation and logistics merger and acquisition (M&A) activity in the third quarter saw annual gains, which were driven by smaller deals in the trucking logistics, shipping, and passenger air sectors, according to data issued in the Intersections report by PwC this week.

With the holidays rapidly approaching, it appears retailers are not quite done getting inventory set up and on the shelves in time for what is expected to be a fairly active shopping season. That much was evident based on recent data for September volumes issued by the Port of Los Angeles (POLA) and the Port of Long Beach (POLB).

Join Industry Expert Adrian Gonzalez for this educational webinar on the tenets and the benefits of Closed-Loop Operational Management. You’ll learn how Closed-Loop Operational Management optimizes orders, inventory, and transportation concurrently, and how it is able to optimize large-scale problems on a daily basis.

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