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Last week, news emerged that the Suez Canal, which is one of the world’s most important waterways, got blocked by a vessel called Ms. EverGreen. This vessel was a Panama-registered ship that is said to have to run aground due to strong winds but human error has not been completely ruled out yet.

This blockade has been going on for more than a week and has left hundreds of ships waiting on both sides of the canal. The canal is a 200km shortcut between Asia and Europe that connects the Red Sea to the Mediterranean sea.

Research firm Strategy Analytics has predicted that this blockade could also slightly affect the smartphone industry. For those unaware, the smartphone industry is already suffering due to the global chip supply shortage. This chip shortage is affecting tablets, cars, TVs, laptops, PC parts, and several other markets alike.

According to the research firm, this blockade could halt around 5% of the smartphone industry’s shipments. The firm only predicts 5% because most smartphone components are shipped through other routes or by air instead.

Strategy Analytics also claims that, if anything, the phone industry would be affected more by volatile oil prices. This is because volatile oil prices will directly affect fuel prices, which will cause delivery prices to fluctuate. This may lead to a slight price increase in the smartphone industry as well.

As for the Suez Canal, efforts are still underway to evacuate the ship, which is the size of 9 football pitches and as tall as the Empire State Building.

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