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Industry Insights: Cargo Vessel Blocks Suez Canal - Impact on Supply Chain

EnVista

On Tuesday, March 23, 2021, a cargo ship became wedged in the Suez Canal near Suez, Egypt, halting marine traffic from one of the busiest waterways in the world. It is estimated the dislodgement could take anywhere from days to weeks.

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This Week in Logistics News (July 20 – 26)

Logistics Viewpoints

The canal is a key source of revenue for the government of Egypt, and it is one of the country’s top earners of foreign currency. Current traffic levels are less encouraging, and suggest that FY 2024/25 numbers will be even lower unless the security situation improves. Secretary of Transportation Pete Buttigieg broke ground on a $1.6

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The Consequences of Supply Chain Constipation

Enterra Insights

Nearly a week ago, a cargo ship — which if it stood on its end would be taller than either the Empire State Building or Eiffel Tower — ran aground in the canal completely blocking the waterway. A journey from the Suez Canal in Egypt to Rotterdam, in the Netherlands — Europe’s largest port — typically takes about 11 days.

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An Update from Sharm El-Sheikh on Decarbonisation of Transport

The Logistics & Supply Chain Management Society

Shipping Routes: Clydebank Declaration. Signatories to the so-called Clydebank Declaration agreed to collaborate to support the creation of green shipping corridors between two or more port pairs. Carriers will be incentivised or obliged to service these maritime routes only with zero emission ships.

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Energy Crisis in Asia and Europe: The Supply Chain Impact

Resilinc

While in 2022 Pakistan received oil supplies from Qatar, Nigeria, Egypt, and Italy, this year supplies from Nigeria and Qatar are set to fall. Per the contract, Eni will deliver one LNG cargo per month between 2017 and 2032. Going forward, Pakistan plans to increase LNG supplies from Egypt to soften the impact of the shortages.

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Three Supply Chain Risk Management Lessons You Can Learn from the Suez Canal Block

CH Robinson Transportfolio

The Ever Given vessel is floating, but the ship is not out of hot water. Although the cargo on the Ever Given is still at a standstill, other ships have been able to freely move through the canal over the past few weeks. The BBC reported that 369 ships were stuck waiting for the Ever Given to be refloated.

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Interoceanic Passages

Abivin

Passages, capes, and straits are defined as geographical areas through which international shipping routes must transit. Chokepoints commonly have shallow, constricting depths, which hinder navigation and place restrictions on ship capacity. By the time Egypt nationalized the canal in June 1956, all British troops had left.

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