Global supply chains in chaos — The Ever Given disaster and its consequences

Am March 23, 2021 The global economy stalled when the “Ever Given”, one of the largest container ships in the world, Suez Canal blocked — one of the most important trade routes between Europe and Asia. More than 400 ships loaded with goods such as electronics, cars and oil were stopped by the accident. The blockage led to a domino effect that was felt in global supply chains over weeks and months and made it clear how vulnerable the global trade network is.

This crisis left companies in significant difficulties, particularly in industries that rely on just-in-time deliveries. A quote from the legendary sailor James Cook From the 18th century could aptly describe the scenario: “Unforeseeable events at sea require the greatest care and preparation.” Even though this was said centuries ago, the statement is more relevant than ever for today's global economy.

Lessons from the crisis: flexibility and diversification

The “Ever Given” accident revealed the weaknesses of a system that is heavily focused on efficiency but little on flexibility. Companies were suddenly forced to develop alternative routes and new supply chain strategies. The following important lessons can be learned from this:

• Diversifying trade routes: Dependence on a single route (such as the Suez Canal) proved to be a major risk. Companies are now increasingly exploring alternative routes, such as transport via the Northeast Passage or increased use of air freight.
• Review of warehouse strategies: Just-in-time deliveries that rely on minimal inventory reached their limits. It is becoming increasingly clear that companies need more flexible and resilient inventory levels to be able to respond to sudden shortages.

The importance of proximity in the supply chain

Another key point from this crisis is the role of geographical proximity. Companies are beginning to move their production facilities closer to their sales markets in order to reduce dependence on long transport routes. Regional production can help to avoid supply bottlenecks and enable a faster response to disruptions.

The “Ever Given” disaster makes it clear that building resilient supply chains is essential for the future of international trade. Companies that rely on greater resilience are able to react more quickly to crises and operate more stably on the global market in the long term. However, this requires a rethink: from short-term, cost-saving solutions to long-term strategies that focus on flexibility, diversification and geographical proximity.