What is the Red Sea crisis? Let's dive into this and its impact on global supply chains. Background:- - A busy trade route contributed to about 12-15% of global trade via Suez in 2023. - Houthi attacks triggered a 42% fall in trade volumes since Dec. - Ships reroute via Cape of Good Hope, Africa to avoid danger zones. Supply Chain Impact:- - Longer transit times. - Bottlenecks & Rising costs Lessons Learnt:- - Diversify suppliers across geography. - Maintain strategic inventory buffer. - Balance between resilience & efficiency. - Strengthen partnerships - Stay agile Do you see the impact of the Red Sea crisis at your workplace? Share your thoughts!! #globaltrade #maritimeindustry #supplychain #logistics
Great piece of analysis Abhishk Sinha, MBA
"Operations Efficiency Mastermind in Port & Shipping Management | Expert in Vessel Planning"
9moThe Red Sea crisis has significantly impacted global supply chains with longer transit times, rising costs, and the need for diversification and strategic inventory buffers. Necessary adjustments are underway.