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Global deliveries expect to be impacted by ship stuck in Egypt

| Apr 5, 2021 | Transportation Law |

For California businesses, delivery problems are often the bane of their existence. These can cost time, money and damage to their operations. One small issue can result in delayed, damaged or ruined cargo. If it is larger, then it can be an extensive challenge that must be addressed. Companies should understand their rights if there is a late delivery, a contract was not adhered to, or products were ruined or did not arrive on time. A recent story that drew worldwide attention is expected to disrupt the global supply chain, which will affect businesses and people everywhere.

Cargo ship stuck in Egypt stokes worry for global trade

A cargo ship that was trapped in Egypt was freed after nearly a week. Even though the outcome was positive in that the ship moved on, concerns remain about the future. With the long-term aftermath unknown, businesses must consider their legal options. Experts in shipping have been issuing warnings as to what the future might hold. Backlogs and disruptions in delivery systems are believed inevitable. The area in which the ship was stuck – the Suez Canal – is a primary hub for large ships like the one that became lodged. Approximately 12% of trade across the planet runs through that area. There were inevitable delays.

Companies who were expecting deliveries or are thinking about the future should know that the crisis is not over simply because the ship was freed. It could take around two months to gauge the damage and return to some semblance of normalcy. For every full day the ship was stuck, the potential problems compounded. This exacerbates other current worries such as a shortage of containers due to the pandemic. One thing inevitably leads to another like links in a chain. There will be scheduling hiccups, cost overruns and more.

Businesses should be shielded based on transportation law

Since a late delivery or a delivery that does not arrive at all can run roughshod over a company’s bottom line and relationship with its customers, it is imperative that there is a full understanding of the available steps to recover for loss based on transportation law. Being cognizant of the alternatives that can be pursued and recovering for all that was harmed because of these unforeseen occurrences can be a critical part of staying in business. For assistance with anything related to maritime law, business and transportation, a firm with experience in these matters might be able to help.