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Suez Canal Blockage Gurgling Through The Truck Industry




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The site blocking the Suez Canal has long since been relocated, but the roaring effect of the delays it created could be felt throughout the supply chain, experts said.

One of those emerging stories, Dean Croke, lead analyst at DAT Solutions, told Transportation Topics. The metaphor of a ripple effect is very apt because most experts think there is a ripple effect that will last through the summer.

Croke noted that, during the first three months of this year, 36% of the volume of containers in the Port of New York and New Jersey came from the Suez Canal, along with 22% of the volume in the Port of Savannah, Ga. .

On March 23, Ever Given containers were blocked in the southern part of the canal. It took almost a week to release him.

Paul Bingham, director of transport consulting at IHS Markit, told TT that the port slowdowns caused by the blockade are set to lead to an influx of activity in the near future.

Paul Bingham, director of transportation consulting at IHS Markit Economics


It will destroy job availability for some trucks over a period of one or two weeks, Bingham said.

Glenn Jones, global vice president of product strategy at Blume Global supply chain technology developer, said port turn times will also be a factor.

With that huge influx coming in and those containers coming in from the number of containers that need to be moved, and then emptied back into the terminals it’s like four times as normal, Jones told TT. Therefore, if there was an airline point carrier or a truck company before, it was simply highlighted now. And that’s exactly what happened.

Bingham noted that beyond the initial impact, supply chain trucks in particular could play catch for a longer time.

The consequences for truckers will last longer, he said. They are already scheduled to say, a month for that ship to return to Asia, to be reloaded, to return to the US Well, that ship will stay late. Will not be able to reach it quickly. And it could be a period of maybe a few months.

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Croke noted that oil shipments and goods such as furniture, plastic items, auto parts and even bananas are among the main items passing through the canal, meaning that truckers transporting these goods need to be prepared.

Carriers that are involved in pulling these types of things will be affected, Croke said.

He also noted that the blockage exacerbated an existing shortage of empty containers, as those on the Ever Given deck were not available during the blockage. This meant less capacity for truckers to transport goods inland or load ships.

That’s why some of our exporters have trouble trying to get equipment, Croke said. Transportation lines have been reluctant to send containers inland and lose several weeks in use.

Glenn Koepke, vice president of network enabling at supply chain development developer FourKites, said traffic jams at the ports of Los Angeles and Long Beach are also causing damage to truckers, but I hope a wait is expected.

I think this continues to be more troubling for ocean trading and ocean purchasing in the US, he said. Will things balance and calm down after this is cleared up within three or four months? I think the answer is yes.

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