Suez Canal closure adds more strain to global supply chains: Moody’s

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Islamabad

The temporary closure of the Suez Canal after container ship Ever Given ran aground could lead to supply chain delays, particularly for European manufacturers and auto makers, according to a report by Moody’s Investors Service.

Supply chains across the world are already strained and “highly vulnerable” to even the smallest of external shocks due to a very high consumer and industrial demand, a global shortage of container capacity and low service reliability from global container shipping companies, the credit rating agency said.

The canal’s temporary blockage could exacerbate this as around 10 per cent to 15 per cent of the world’s container throughput is expected to be affected, according to Moody’s.

Europe’s manufacturing and auto suppliers are expected to be hit most by the Suez Canal snarl since.— TLTP