By Benny Lim

WHEN the container ship Ever Given blocked the Suez Canal for a few days in March 2021, the world suddenly realised the vulnerability of its global supply chain. 

That was a dramatic, highly visible event. Now, the same supply chain, or at least a section of it, is again being impacted by an international waterway turning into a choke point. This time, the impact has been gradual and not noticed by the world in general. However, the shipping and logistics industries certainly have noticed and are concerned.

One UK-based global courier service, ParcelHero, regularly comments on the international logistics business. It recently issued a press statement with the alarming subject line: “Panama Canal crisis eases but is Christmas cancelled already?”

ParcelHero warned: “There has been a fall in the number of ships queueing to use the drought-stricken Panama Canal. However, there are still restrictions on how many ships are allowed through the canal per day and how much vessels can carry. With just 15 weeks to go, the ongoing delays will impact Christmas.”

It may only be early September, but the ultimate impact of the Panama Canal crisis is likely to be a more expensive, more restricted Christmas. It noted that, with about three months to go, many manufacturers and retailers are already gearing up for their peak season.

The Panama Canal is the main route for goods to America’s East Coast from Asia, and it carries 40 per cent of all US container traffic. Those containers will be full of products, from clothes to phones to toys. And what impacts America will also impact the UK this Christmas. There are signs the Panama Canal crisis is easing, but it could be too little, too late.

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