Maritime Shipping Disruptions Have Global Impact
The effects of Maritime Shipping Disruptions to your life isn’t likely something you think about on a daily basis. You have other important and urgent matters to attend to. Your marriage, kids, work, sports and hobbies are all more important than the inner working of the maritime shipping industry.
The interesting part of that equation is how important the maritime shipping industry is to all of those parts of your life. You often don’t realize that until there are shipping disruptions that affect your corner of the world.
The interconnected nature of maritime shipping means that large disruptions can be felt worldwide. Far from their place of origin and reach you like a domino effect.
Consider the next 3 examples:
The Covid-19 pandemic and the international shipping disruptions that swept across the world due to the response to the virus. This is a prime example of how Maritime Shipping Disruptions have global impact.
While COVID itself was not directly related to the maritime shipping industry, the downstream effects had major trade implications.
The precautionary measure put in place by most of the worlds governments nearly ground global trade to a halt. At one point, there were nearly 300,000 seafaring men and women that were stranded out at sea. With no place to accept them, many of them stayed out far beyond the end of their contract obligations.
Organizations like UNCTAD (United Nations Conference on Trade and Development) have called to have seafarers considered essential workers and be exempt from COVID restrictions, with good reason. The importance of the maritime shipping industry, and the goods and materials that are supplied through their efforts, make life better for everyone around the globe.
Suez Canal Blockage
Prior to the Suez Canal incident in March of 2021, the majority of people worldwide didn’t know about the Suez Canal. Even though it is vitally important to the well-being and prosperity of much of the world, the Suez Canal was a mystery to many. That is until March 2021 when the ‘Ever Given,’ a large container ship, became stuck, blocking all traffic. The Maritime Shipping Disruptions caused by his one major incident is having an ongoing ripple effect.
The Suez Canal handles approximately 12% of all global trade. That is 9 billion dollars worth of goods per day. No industry was left untouched by this accident.
With ships not being able to move along their scheduled routes, shipments were not delivered. This meant that factories couldn’t continue production because of missing parts. Transfers were missed, meaning that those shipments were now stranded.
One ship, blocking one waterway, had a cascading effect that was felt worldwide.
Distribution and Location of Shipping Containers
Logistics can also be a challenge. When you understand the scale and complexity
of global maritime trade, it is amazing that anything reaches anywhere on time.
And yet it does, consistently and predictably. Although, there are exceptions to this.
A combination of circumstances, including the blocking of the Suez Canal, have led to an increased number of sea shipping containers being in the wrong place at the wrong time.
In some parts of the world the production of sea containers is at an all-time high. But even so there are major shortages plaguing the industry. And this has been causing very costly Maritime Shipping Disruptions and global shipping delays.
In other parts of the world, containers are being left loaded because of the lack of manpower to unload them. And Peter Friedman, executive director at the Agricultural Transport Coalition, states that 22% of sales are lost because they can’t get their goods overseas.
Maritime Shipping Disruptions do happen and the ripple effects do reach other industries worldwide. Understanding these incidents helps shed light on the vital importance of the maritime shipping industry in our everyday life.
The most important factor to note is that they do not happen often. And shipping goods overseas is still the most cost-effective and safe way to transport goods. Using a reliable and proven company ensures that you prevent all avoidable disruptions in your shipping process.
Bon Trade has decades of experience delivering on the promise to deliver your goods, when you need them and where you need them. Reach out to Bon Trade today and see how your maritime shipping needs can be taken care of. Especially if you are shipping to the ABC Islands and Sint Maarten.