Recent hostilities in the Red Sea region have ignited a supply chain upheaval, compelling major shipping companies like Maersk, Evergreen, and Hapag-Lloyd to reroute vessels, bypassing the Suez Canal. The escalation, triggered by Houthi attacks, poses a significant threat to global supply chains, creating uncertainties and potential delays.

The Suez Canal, facilitating 12% of global trade and transporting over a billion barrels of oil daily, stands vital to international commerce. A disruption of this magnitude not only leads to delayed shipments but also sparks a surge in shipping costs, escalating by 4% in the past week alone.

As supply chains face this unprecedented challenge, procurement teams must proactively track shipments, communicate transparently with stakeholders, and consider broader implications, such as potential inflation and geopolitical tensions. Drawing on past experiences, including the Covid-19 pandemic and geopolitical events, procurement professionals are urged to embrace resilience strategies to mitigate the impact of this latest disruption.

Please pay attention to the situation of skyrocketing sea freight and extension of shipment schedule.