The supply chain held hostage

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

By ·

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

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 [email protected]

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!

Latest Whitepaper
New Supply Chain Technology Best Practices
New breakthrough developments, such as drones and driverless vehicles, seem to be everywhere.
Download Today!
From the October 2017 Logistics Management Magazine Issue
A leading distributor of professional salon products in the U.S. forms unique partnerships with its key LTLs to lower transport costs, reduce its carbon footprint and improve service to its 565 store locations.
Q4 2017 Rail/Intermodal Roundtable: Improvements apparent; work remains
LM Viewpoint: Collaboration, Now more than ever
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
The State of the Rail/Intermodal Markets
In this webinar our panel will discuss the new service challenges facing rail/intermodal providers and offer practical advice for how shippers can keep efficiency high and costs down.
Register Today!
EDITORS' PICKS
SalonCentric: One Beautiful Network
A leading distributor of professional salon products in the U.S. forms unique partnerships with its...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...

26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...