The Evergreen ship is now free from the Suez Canal. Now for the bad news: lawsuits! How many? Lots. Shippers, other carriers, the Suez Canal itself, will all have claims on the $3.1 billion insurance policy – and way beyond. The insurance policy is actually a “protection and indemnity club” of other vessel operators – sort of like a mutual insurance company.
Consistent with what we see here, freight rail transport from China to Europe is growing rapidly as Chinese manufacturers embrace the overland connection.
For the next months, expect business magazines to talk about resilience and being prepared for what have historically been considered unlikely events. Here is an example: “As COVID-19 and the recent chip shortage have both shown, supply-chain diversification and redundancy is expensive – but possibly less expensive than not having it in the end.” Wall Street Journal. How do we know that?
Have a good Easter!