News emerged earlier last week, precisely on Tuesday, that the Suez Canal which is one of the world’s most-important waterways was blocked by a Panama-registered vessel Ms. EverGreen. The ship is said to have run aground due to high wind but human error isn’t completely ruled out at this point.
The blockade has lingered for almost a week and has left hundreds of ships waiting on both sides of the canal which is a 200km shortcut from Asia to Europe, connecting the Red sea to the Meditteranean sea.
Strategy Analytics has now predicted that the blockade could have an effect on the already battered smartphone industry but the effect won’t be much. The industry is already faced with a shortage of chips, also affecting tablets, laptops, TVs, and cars.
The research firm estimates that the Suez Canal record less than 5% of global smartphone logistics flow. A lot of these components are shipped worldwide using other sea routes or by airplanes. However, if an impact will be felt by the smartphone industry, Strategy Analytics thinks it will be through volatile oil prices. Most of the vessels that are held up at the Suez Canal are oil-laden vessels. Thus, the delay may lead to yet another upset for the volatile commodity. A rise in the price of fuel will affect delivery trucks and factories that rely on generators and could lead to a slight price increase.
Efforts are still underway to try to evacuate the ship, said to be the size of 9 football pitches and as tall as the Empire State building, from the position of obstruction.
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