Have you ever ordered something online and wondered why it was delayed? Sometimes, the reason is thousands of kilometers away, in the middle of the ocean. Global trade depends on huge ships moving goods through specific routes, and when those routes are disrupted, we feel the effects everywhere. Today, we'll investigate two major shipping disruptions—one in the Red Sea and another in the Panama Canal—to understand how a problem on the other side of the world can affect your next shopping trip.
Starter: Two Routes, Big Difference (5 mins)
Look at the map below with a partner. It shows the common shipping route from Asia to Europe through the Suez Canal and the alternative route around the Cape of Good Hope in Africa. Discuss the following questions:
Source: Encyclopaedia Britannica, Inc.
- What are the obvious differences between the two routes?
- If you were a shipping company, which route would you prefer to use? Why?
- What could be some negative consequences of being forced to use the longer route? Think about time, cost, and fuel.
Vocabulary: The Language of Logistics
To understand this topic, we need some specific vocabulary. These words are used by reporters, economists, and business owners when they discuss global trade.
| Word | Definition | Example |
|---|---|---|
| supply chain | the entire system of producing and delivering a product or service, from the source to the consumer | A problem in any part of the supply chain can cause major delays for customers. |
| reroute (verb) | to change the route that a ship, vehicle, or message travels along | Due to the attacks, shipping companies had to reroute their vessels around Africa. |
| freight rates | the price charged for transporting goods from one place to another | When demand is high and routes are long, freight rates increase dramatically. |
| lead time | the time between placing an order and receiving it | The factory's lead time for new computers is now six weeks instead of two. |
| bottleneck | a point of congestion or blockage in a system that slows everything down | The Panama Canal became a major bottleneck for global shipping due to low water levels. |
Chart Gallery: The Data Behind the Delays (15 mins)
In small groups, analyze the following three charts. They show the real-world impact of recent disruptions in the Suez and Panama Canals. For each chart, discuss what you see and what it means for global trade.
Chart 1: Transits Chart 2: Freight Rates Chart 3: Lead Times
Chart 1: Daily Transit Trade Volume
Discussion Prompts:
- What happened to traffic in the Suez Canal in early 2024? What happened to traffic around the Cape of Good Hope at the same time?
- How does the change in the Panama Canal compare? What might cause a slower decline?
- What do these trends mean for the ports that rely on these canals?
Chart 2: Containerized Freight Index
Discussion Prompts:
- How much did average freight rates change in early 2024?
- Who pays for this extra cost? The shipping company, the seller, or the customer?
- If you owned a small business that imports goods, how would this chart make you feel?
Chart 3: Average Shipping Lead Times
Discussion Prompts:
- How much has the average lead time increased on the route shown?
- What kind of products would be most affected by these delays? (e.g., fresh food, seasonal fashion, electronics)
- What is the connection between this chart and the first map we saw?
The Story Behind the Charts
Your analysis of the charts shows major changes in global shipping. These are the results of two separate crises happening at the same time in two of the world's most important maritime passages.
Crisis 1: Attacks in the Red Sea
The sharp drop in Suez Canal traffic is a direct result of attacks on commercial ships in the Red Sea. This area is the only entry point to the Suez Canal from the south. To avoid the risk, major shipping companies decided to reroute their vessels all the way around Africa. As you saw in the first map, this adds thousands of kilometers and weeks of travel time to their journey, causing freight rates and lead times to increase significantly.
Crisis 2: Drought at the Panama Canal
At the same time, the Panama Canal has been facing a severe environmental problem: a historic drought. The canal relies on massive amounts of fresh water from a nearby lake to operate the locks that lift ships up and down. With critically low water levels, the canal authority was forced to reduce the number of ships allowed to pass each day. This created a major bottleneck, causing long queues of ships and forcing others to seek alternative routes.
Grammar Focus: Explaining Cause and Effect
When reporting on current events, we often need to explain a sequence of events (what happened first, second, next) and the consequences (if this happens, then that will happen).
Sequencers
Sequencers help you organize a story and make the timeline clear for your audience. They usually come at the beginning of a sentence.
- Initially, shipping companies were hopeful the Red Sea disruptions would be temporary.
- Subsequently, as attacks continued, they were forced to reroute all their vessels.
- Meanwhile, the Panama Canal was facing its own crisis due to a severe drought.
- As a result, global supply chains experienced significant stress from two directions at once.
Conditionals (First Conditional)
The first conditional is used to talk about the real and possible results of an action. It's perfect for explaining the consequences of current events. The structure is: If + present simple, ... will + infinitive.
- If freight rates continue to rise, consumers will pay more for imported goods.
- If the drought in Panama worsens, the bottleneck will become even more severe.
- Shipping companies will lose a lot of money if their ships have to take the longer route for the rest of the year.
Speaking: Explain It Like a Reporter (20 mins)
It's time for your team to step in front of the cameras. Your task is to prepare a 90-second press briefing that explains the shipping crisis to the public. Use the information from the charts and your own analysis.
Briefing Task
In your group, prepare a 90-second report. Decide who will present each part. Your report should answer three key questions:
- What happened? (Briefly describe the problems in the Red Sea and Panama Canal).
- Why does it matter? (Explain the immediate effects, like longer routes and higher costs).
- What are the consequences for us? (Describe the impact on prices, product availability, and lead times).
Try to use at least two vocabulary words from today's lesson and at least one sequencer and one conditional sentence.
Q&A Session (15 mins)
After each group gives their press briefing, the other students will act as journalists. Your job is to ask tough but fair questions. The presenting group must answer them.
Sample Journalist Questions:
- What is the environmental impact of thousands of ships taking a longer route and burning more fuel?
- Which countries or industries are most affected by these disruptions?
- Are there any long-term solutions, or will we continue to face these bottlenecks?
- How will this affect local businesses in our city compared to large multinational corporations?
Wrap-up: Localize It (5 mins)
Think about one product you use regularly that is imported to your country (e.g., a smartphone, a type of fruit, a piece of clothing). With a partner, quickly trace its likely journey.
- Where was it made?
- Which major shipping lanes would it have to pass through to get here?
- Based on today's lesson, how might its journey have been affected in the last year?