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Report: Retailers working on mitigation strategies amid Suez Canal blockage

Ship's convoy passing through Suez Canal
Ship's convoy passing through Suez Canal

The mega-container ship that is stuck in the Suez Canal is holding up millions of dollar in trade on an hourly basis and adding more stress to an already strained supply chain.

The stranded vessel is holding up an estimated $400 million an hour in trade, based on the approximate value of goods that are moved through the Suez every day, according to shipping data and news company Lloyd’s List, reported CNBC. Lloyd’s values the canal’s westbound traffic at roughly $5.1 billion a day, and eastbound traffic at around $4.5 billion a day. 

Members of the National Retail Federation are actively working with carriers to monitor the situation and determine the best mitigation strategies, Jon Gold, NRF VP of supply chain and customs policy, told CNBC, adding that the blockage is further stressing an already strained supply chain

“Many companies continue to struggle with supply chain congestion and delays stemming from the pandemic,” he said. “There is no doubt the delays will ripple through the supply chain and cause additional challenges.”

The Suez Canal, which separates Africa from Asia, is one of the busiest trade routes in the world, with approximately 12% of total global trade moving through it, the report noted. To read the full story, click here.

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