Lief’s Head of Procurement and Planning, Jeohvan Montoya, Addresses the Impact of Red Sea Crisis for NIE
In an article for Nutrition Industry Executive, Jeohvan Montoya, the Head of Procurement and Planning at Lief, talks about the growing disruptions the global supply chain is facing from attacks by geopolitically driven rebel groups on cargo ships and tankers in the Red Sea, which began in late 2023 and have continued into 2024.
According to an article by the World Economic Forum, the Suez Canal and the Red Sea channel approximately 30% of the world’s container traffic and facilitate the annual movement of merchandise valued at over $1 trillion. These continued Red Sea area threats have forced many shipping vessels to alter their courses from the highly utilized Suez Canal to be rerouted around Southern Africa and the Cape of Good Hope, which add approximately 4,000 miles to ocean shipping routes. These detours significantly impact the world’s supply chain and logistics, including limited shipping lanes, port congestion, container shortages, extended lead times, and overall transportation and shipping price increases.
Working with a contract manufacturer like Lief, Jeo addresses the challenges that supply chain and logistics leaders from the nutrition and other global industries have been forced to tackle, including the development of timely near-term strategies, as well as revised longer-term planning to help mitigate supply, production, and budgetary risks.
