The recent grounding of a cargo ship inside Egypt’s Suez Canal, which handles approximately 10 percent of global trade, created a backlog of cargo ships impacting the world’s supply chain. Bisnow, reporting on the incident’s affect on U.S. commercial real estate, specifically logistics warehouses, tapped Chris Brown, senior vice president of the Southeast region for Duke Realty, for his insights.
“I think this really accentuates how end users need to diversify their supply chains,” said Brown. “It’s an example of why you don’t want to be beholden to one shipping line or route.”
Brown added that the grounding of the Suez Canal cargo ship in tandem with massive disruptions in global trade these past few years could encourage industrial customers to store even more product on U.S. soil or begin manufacturing additional products at home.
The Bisnow article, This Is How A Cargo Ship Stranded In The Suez Canal Could Impact CRE, published March 25, 2021.