Supply Chain: Planning For Water Logistics Constraints

On March 23rd, 2021, supply chain issues became headline news when the Ever Given, a 20,000 TEU container ship, blocked the Suez Canal. Over the past two years, the supply chain was plagued with transportation issues impacting cost and reliability. This week, another shoe dropped. On May 24th, The Panama Canal Authority (ACP) announced a restriction in weight of ocean vessels moving through the locks. A second restriction, announced on May 30th, reduces the draft to 44 feet. So what? Who should care? I believe this is a canary in the coal mine. If we have a long, hot summer, expect more logistics constraints.

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