SUEZ BACKLOG IMPACT

The Suez Canal's week-long blockage has further exacerbated a situation where global supply chains will falter, further and faster.

The bizarre grounding of one of the world's largest container ships delays as many as 350 ships and one million containers (TEU's)  and further negatively impacts supply chains worldwide.

Unfortunately, just there was no way to put Humpty Dumpty back together again. (At least not quickly) And, there is not an easy fix for global supply chains already facing critical logistics challenges.

So much for tariffs balancing trade. Anticipating record sales growth this year, US retailers Monday said they plan to import nearly 25 percent more cargo in the first half of 2021 than they did in 2020

Global Port Tracker estimated that containerized imports in February increased 24.4 percent over February 2020. It projects a huge 44.1 percent year-over-year increase in March due to weak import volumes in March 2020. April imports are projected to increase 18.2 percent, May imports 25.2 percent, June imports 19.6 percent, and July imports 5.3 percent.

Such are the vicissitudes of today's global supply chain. This means on certain lanes for your shipments, potential delays will and are increasing significantly. The ships are off schedule more than ever, and massive container shortages in key origins will get worse before they get better. 

All industry worldwide is affected. Carriers are altering their services to minimize negative service impact. East coast ships and space (which would have been our recommendation to curb cost 30 days ago) have been are being canceled. West Coast Ports have their own set of issues - rail services backed up, long waits at anchor, no equipment at origins to satisfy demand.

Price and Service are binary. JMC & our partners worldwide have always focused on service first.  We have the credibility and consistency to find the best solutions for your company at a competitive price.