Logjam in Suez Canal snarls 237 vessels and oil tankers; Impacts global supply chains

The Suez Canal container blockage has further constrained already stained global supply chains like "never before" and will "heap pressure on businesses already facing container shortages, port congestions and capacity constraints.

The 25-mile long logjam in the Suez Canal after the Ever Given ran aground the narrow waterway connecting the east and west, has snarled 237 vessels and oil tankers and could take weeks to clear, making the movement of goods more expensive.

The exacerbated impact comes at a time of "unprecedented demand" as the Canal handles 12 percent of global trade. It could hold up consumer goods from Asia to Europe and United States and in the opposite direction, movement of agricultural products.

Over 80 percent of global trade is carried out by sea and the disruptions have added "billions of dollars" to supply chain costs. Container shipping cost for sea import of US goods was $5.2 billion in February 2021, compared to $2 billion in February 2020, as per S&P Global Panjiva.