Even before the lockdown, companies faced a supply shortage due to the coronavirus pandemic. Nike, Costco, Toyota, Honda and Samsung recently announced that supply chain problems are hurting business this quarter and are likely to impact it in the future.
The congestion in the Suez canal further delays shortages . Experts say the blockage costs about $ 400 million an hour , and it could take weeks to move a jammed ship. Some ships will choose an alternative route around Africa, which will increase their journey by 15,000 miles and approximately two weeks.
Shopkeepers may face another toilet paper shortage
One of the largest producers of pulp used in toilet paper said that a congestion in the Suez Canal is likely to delay the transport of wood pulp and, consequently, the availability of toilet paper in stores.
Depending on how long it takes to shift the huge 224,000 tons of freighter called Ever Given, buyers may experience a shortage of many items. The ship is said to be larger than the Empire State Building.
- The blockade of the Suez Canal contributes to many problems in supply chains
- A freighter, which is slightly larger than the Empire State Building, may take weeks to move and unlock the canal
- A congestion can affect the availability of many imported goods, including toilet paper and coffee
About 12 percent world trade passes through the Suez Canal, the Egyptian waterway that connects Europe and Asia. Ever Given, one of the canal’s largest ships, blocks hundreds of stuck cargo ships in traffic.
Due to the COVID-19 pandemic, some people have started to stockpile toilet paper and household goods. They may soon find themselves in a similar position as they did last year, when the availability of toilet paper seemed to be worth its weight in gold.
Toilet paper prices may also increase as delays in ports, even outside the Suez Canal, increase the cost of transportation abroad.
Coffee stocks may be depleted due to congestion in the Suez Canal
Congestion in the Suez Canal is also blocking shipping containers full of beans used to make, Coffee scarcity is likely to be felt more acutely in Europe, but could impact globally, coffee roasters do not have a “buffer” to deal with two or three weeks of delivery delays.
The blockage may soon affect the availability of coffee in stores and cafes. This overlaps with the problems with grain deliveries, which have already been reported in recent week.
The pandemic-induced lifestyle and work at home contributed to the flourishing of the interior and furniture industry. But customers are already receiving signals that furniture deliveries are delayed by up to several months.
Experts say the blockage could not have come at a worse time
It couldn’t have happened at a worse time,” he said. He noted that consumption that boosts the economy is hampered by interruptions in supplies and gaps in inventories. “How can you think of an incentive to buy if you can’t buy anything? The waiting time for a couch could be more than three months,” he added.