There are several major maritime choke points around the globe which hold significant importance to international shipping and the global economy. Recently, the Suez Canal experienced an incident where a cargo ship accidentally blocked the entire canal and stopped all shipping traffic. While this incident was resolved and the ship was freed from its position, it showed the world the impacts of a choke point being blocked. This is what can occur if the Panama Canal were to face a similar problem and how it would affect your cargo shipping company in Miami.
Similar Global Reactions to the Suez Canal
The Panama Canal is one of the top shipping routes in the world with a large amount of traffic navigating through it every day. If the Panama Canal were to be blocked similarly to the Suez Canal or due to another incident, the global reactions would appear the same as when the Suez Canal was blocked. Governments impacted by this problem would be trying to find a solution as quickly as possible for global trade to reconvene. The stock prices for cargo companies and the cost of shipping would be impacted depending on their risk management plan.
Shipping Temporarily Halted
International shipping that planned to go through the Panama Canal would be temporally paused unless the cargo company already carried out their backup shipping route. For every company still processing the incident and coming up with a plan, their vessels would be halted until they put their plans into motion. Any businesses with products aboard the stopped vessels, their shipments will take longer than expected.
Risk Management Plan is Implemented
A great cargo company such as one found in Miami already has a risk management plan in place in case of any situation. No matter how unlikely the problem may be, there is always a plan in place for it. If a business hired the best cargo shipping company in Miami and the Panama Canal were to be blocked, the company would put their plan in action to retrieve the products from their shipping vessels and ship them by air the rest of the way. Being prepared for every situation is important with cargo shipping.