Ocean rates continue to rise as disruptions continue in Red Sea, Panama Canal
Pressure is high on the global supply chain, which is facing critical climate events and geopolitical crises in the Panama Canal and Red Sea. As the drought at the Panama Canal and new attacks on commercial vessels in the Red Sea by Yemen-based Houthi militants continue to squeeze shipping capacity, supply chain leaders must be better prepared than ever to create resilient and agile global networks.
“The recent Houthi attacks in the Red Sea are a stark reminder of the geopolitical risks facing global trade,” said John Donigian, senior director of supply chain strategyat Moody’s Analytics. “While the immediate attacks were on oil and agricultural shipments, this trade route is utilized for a multitude of products and industries that rely on timely and cost-effective shipping. If attacks become more regular and frequent, the impact on global trade and supply chains could be far-reaching.”
Donigian continued that “the situation further demonstrates the need for businesses to build resilient and flexible supply chains. By leveraging data and technology to gain visibility into supply chain risks, companies can make informed, strategic decisions to stave off operational disruption.”
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