A stuck container vessel in the Suez Canal, which has blocked the flow of goods through the narrow channel, will add strain to global supply chains already stretched by rebounding economic activity and tight shipping container supplies, analysts said on Friday. Roughly 30 per cent of global container traffic flows through the canal annually. The severed trade route could affect about 10 per cent-15 per cent of world container throughput while the blockage persists, analysts from Moody’s Investors Service said. The Suez Canal is also a preferred route for U.S. importers of manufactured goods such as footwear and apparel from Southeast Asia and India, they added. The transport minister of Singapore, the world’s top transhipment hub, said on Thursday the blockage in the Suez Canal could temporarily disrupt supplies to the region, and potentially cause a drawdown on inventories.

Source: Standard Digital March 26, 2021 14:31 UTC