Introduction
Transnational waterways are crucial to international trade; even minor mishaps can lead to a significant network collapse. Still, canals provide shorter transit mileage, less time, and reduced vessel operating expenses. The Ever Given, one of the largest cargo vessels ever constructed that is taller than a skyscraper in length, became trapped in the Suez Canal for six days in March of 2021, halting global commerce and preventing the exchange of close to $10 billion every day (Leivestad, 2022).
It was an endlessly entertaining sight for people on web platforms and the media. Yet, it was a worst-case scenario in the dangers of a new kind of mega-freighter working in confined places for international transportation. In the end, the issue of the Ever Given vessel had an impact not on Lyon’s economic factors but on legal and social ones since it disrupted supply chains and required much effort to resolve the problem.
PESTLE Theoretical Model
A corporation must comprehensively analyze the six primary factors identified by the PESTLE paradigm before developing its plan. Political, economic, sociological, technical, and legal factors are among the variables that are involved. In the given situation, the political factors of Ever Given involved compensation to Egyptian authorities (Cahalan, 2021). Legal issues involved compensating other cargo vessels challenged by blocked waterways since the canal works according to a tight schedule, and minor mishaps might lead to immense losses (Phan, 2021).
As for economic factors, such issues in the cargo shipping industry often lead to delays and, consequently, increased inflation due to increased demand and insufficient supply. Technical factors involve infrastructure, with which the vessel could be moved, and the pilots’ navigation given to the ship’s commander. Lastly, social factors include the general public whose goods delivery was delayed.
Organizational Risk Consideration, Management, and Execution
Egyptian authorities and Ever Given assessed the organizational risk of the canal blockage. According to the estimates, such an issue affected more than 400 ships set to go both eastward and westward through the Panama Canal. The utilization of itineraries and timetables presented a problem for such vessels. Ships that were expected to arrive at or travel through the waterway and importers, logistics providers, ship owners, and terminal operators were among other victims (Khan & Rahman, 2021).
The estimates showed additionally that between $15 and $17 billion had been lost in damages (Lee & Wong, 2021). The management of the issue involved moving a vessel from the side to the middle, which involved hiring a team with bulldozers and cranes. The problem with the 220,000-ton vessel was resolved in six days after it was squeezed crosswise into a single side of the waterway by 24-hour drilling and tugging that shoved and tugged it into the middle of the canal (Lee & Wong, 2021). Therefore, the successful execution cut financial damages for Ever Given and other shipping companies.
Conclusion
Hence, since the Ever Given vessel issue interrupted supply networks and required significant rectification efforts, it also affected legal, social, and economic issues. The factors that needed consideration were compensation to other shipping companies, the Egyptian authorities, and the general public whose deliveries of goods were delayed. In the end, after six days of calculating the risks and damages, the shipping vessel was moved with the help of machinery. The ship was moved from the side to the middle, which allowed it to unclog the canals.
References
Cahalan, A. (2021). Maritime law: The ship that keeps on given-legal implications of the Suez Canal debacle. LSJ: Law Society of NSW Journal, 78, 74-76. Web.
Khan, I. A., & Rahman, S. (2021). Review and analysis of blockage of Suez Canal region due to giant container ship. Marine Technology Society Journal, 55(5), 39-43. Web.
Lee, J. M. Y., & Wong, E. Y. C. (2021). Suez Canal blockage: An analysis of legal impact, risks and liabilities to the global supply chain. MATEC Web of Conferences, 339, 1-13. Web.
Leivestad, H. H. (2022). The shipping container. In History and Anthropology, pp. 1-6.
Phan, S. (2021). The effect of pestle factors on development of e- commerce. International Journal of Data and Network Science, 5(1), 37-42. Web.