Suez Incident Highlights Importance of Managing Supply Chain Risks

The recent grounding of cargo ship Ever Given in the Suez Canal has had a huge impact on shipping between Europe and Asia, disrupting the global supply chain and causing huge losses for businesses and their insurers.

According to Mark Robinson, president of UPS Capital, another similar disruption is brewing off Southern California, with multiple ships being forced to wait offshore due to congestion in the ports of Los Angeles and Long Beach.

"These are two high profile examples of supply chain disruption," Robinson told Corporate Risk and Insurance. "The truth is every now and then, bad things happen to good cargo. According to the World Shipping Council, an average of 1,382 containers are lost or damaged at sea each year."

Read more at Corporate Risk and Insurance NZ.