Blockage of the Suez Canal that had been caused by Evergreen's containership ‘Ever Given’ since 23 March, will hasten the global shift away from just-in-time supply chains after further exposing their fragility, according to A.P. Møller-Maersk CEO Søren Skou.
The Danish shipping giant Maersk, sometimes seen as a bellwether of global trade given that it carries one fifth of the world’s ocean-going unitised freight, has a number of ships among the hundreds of vessels delayed by the blockage of the ‘Ever Given’ and has already rerouted 15 of its vessels around South Africa, adding about 10 days to journeys. It is also considering using air freight to get crucial components to customers.
Interviewed by The Financial Times, Skou said that companies had already been changing their supply chains because of the coronavirus pandemic, moving away from single suppliers and rethinking their dependence on just-in-time supply chains – where parts and components are delivered to manufacturing and assembly plants exactly when required. Instead, companies are increasingly embracing just-in-case supply chains, keeping much higher levels of inventory to avoid being caught short by disruptions.
More on the fallout from LloydsLoadingList and the now refloated Ever Given.
