Suez Canal Blockage-Time to Rethink Global Supply Chain
| Case Code: OPER155 Case Length: 13 Pages Period: 2021 Pub Date: 2022 Teaching Note: Available |
Price: Rs.300 Organization : Industry : Countries : India Themes: Supply Chain Management, Outsourcing, Global Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Impact of Blockage
The blockage lasted for six days but it created a ripple effect that was expected to disturb the global supply chain for days to come. Brian Alster, General Manager of Third-Party Risk & Compliance at Dun & Bradstreet, said, “The disaster of the moment becomes a global phenomenon because it is yet another reminder of the interconnectedness that comes with globalization and our reliance of each other as contributors to the global supply chain..
Rethinking the Global Supply Chain
In order to get more goods transported at one go, the shipping industry had started floating large vessels (often called megaships) carrying a huge amount of goods. These megaships offered the international shipping companies economies of scale. Using one large ship to transport goods internationally, instead of floating multiple smaller ships helped the companies save on fuel, cut down on the cost of transportation per container, as well as reduce the ship’s environmental footprint..
Exhibits
Exhibit I-Ever Given Container Ship
Exhibit II: Suez Canal
Exhibit III: Impact of COVID on Global Supply Chain
Exhibit IV:
Alternative Route for Shipping while Suez Canal was Blocked
Exhibit V: Container Shortage in Global Shipping Industry
Exhibit VI: Top Importers of Crude and Products via Suez Canal
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