The Suez Canal congestion is now cleared after six-day-long traffic, but the impact still adheres on the industry. Maersk believes to witness the impact of the congestion on the Global Supply Chain with a reduced capacity and shortage of equipment which is ongoing since the second half of last year.
Looking at the significant loss in the volume over a couple of weeks and watching the market dynamics. Maersk has decided to cease the short-term bookings placed via Spot, along with the short-term contracts effective immediately.
The postponement of spot and short-term contracts will impact the exports that aren’t a part of the Asian transit. Maersk states that this decision is taken due to the shortage of equipment. The suspension will have a massive impact on the exports from North America to the Middle East, the Indian Sub-continent, and East Africa.
Maersk also quoted,
“We want to assure you that this is only temporary so that we may quickly move existing laden cargo and empty containers to the areas they are most needed.”
The Suez Canal congestion has resulted in acute port blockage on the US West Coast, and at other crucial ports, and aggravated an already existing shortage of containers in prime export markets.