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

On March 23, 2021, the global economy came to a standstill when the "Ever Given", one of the world's largest container ships, blocked the Suez Canal - one of the most important trade routes between Europe and Asia. Over 400 ships loaded with goods such as electronics, cars and oil were held up by the accident. The blockade led to a domino effect that was felt in global supply chains for weeks and months, highlighting just how vulnerable the global trade network is.

This crisis has caused considerable difficulties for companies, particularly in industries that rely on just-in-time deliveries. A quote from the legendary 18th century navigator James Cook could aptly describe the scenario: "Unpredictable events at sea require the greatest caution and preparation." Even though this was said centuries ago, the statement is more relevant than ever to today's global economy.

Lessons from the crisis: flexibility and diversification

The "Ever Given" accident revealed the weaknesses of a system that is strongly geared towards efficiency but not very flexible. Companies were suddenly forced to develop alternative routes and new supply chain strategies. The following important lessons can be drawn from this:

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

The importance of proximity in the supply chain

Another key issue arising from this crisis is the role of geographical proximity. Companies are beginning to relocate their production facilities closer to their sales markets in order to reduce dependence on long transportation 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 focus 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 change in thinking: from short-term, cost-saving solutions to long-term strategies that focus on flexibility, diversification and geographical proximity.