Suez Canal Incident, Impact on Global Smartphone Market 'Below Average'

Global Market Research Firm SA Analysis
Maritime Transport via Suez Canal Accounts for Less Than 5%
Indirect Impact Level Due to Oil Price Increase

The 'Ever Given' ship blocking the Suez Canal [Image source=Yonhap News]

[Asia Economy Reporter Cha Min-young] "The large ship ('Ever Given') is only a minor issue."

Concerns over disruptions to the global smartphone supply chain have increased as the salvage operation for the massive container ship Ever Given, which is blocking the Suez Canal, faces difficulties. However, market impact is expected to be "moderate or less." Due to the industry's characteristic reliance on maritime transport being less than 5%, it is diagnosed that only indirect effects from rising oil prices and competition in air transport will occur.

According to industry sources on the 29th, Neil Moston, an analyst at global market research firm Strategy Analytics (SA), recently analyzed that "the impact of the Suez Canal incident on the global smartphone market is currently low to moderate."

SA estimates that less than 5% of the global smartphone-related logistics volume passes through the Suez Canal. Most smartphone finished products and components are transported by air or other logistics means. For example, a single 'Boeing 747' flight can move as many as 150,000 smartphones from the manufacturing plant to the warehouse in just a few hours.

Analyst Neil Moston pointed out, "If there is any impact, it would be an indirect effect due to unstable oil prices," adding, "As fuel costs rise for delivery trucks or factory generators, it could add inflationary pressure to the smartphone market, which is already experiencing inflation."

He also emphasized again, "While there may be cargo disputes as European or Asian shippers increase demand for air transport instead of container ships, overall impact under the current situation is moderate or low."

This content was produced with the assistance of AI translation services.