Suez Canal Blockage Affects Commerce Worldwide
We want to provide you an update: The Suez Canal has exceeded 36 hours of canal closure due to the grounding Ever Given, and efforts to float the vessel at high tide were unsuccessful.
According to the Journal of Commerce:
The Ever Given remains grounded in the Suez Canal, blocking more than 30 other container ships from transiting the primary waterway connecting Asia with Europe, after attempts to refloat the ship were suspended last night, according to the canal authority and its main shipping agent.
The Suez Canal Authority (SCA) said Thursday that navigation will remain suspended until it can fully refloat the 20,000 TEU Ever Given, which ran aground while transiting northbound in the southern end of the canal on Tuesday morning. The SCA said the eight large tugboats it had deployed were only able to partially refloat the ship and two dredging vessels also had to be brought in overnight to dig the vessel out.
Peter Berdowski, the chief executive of Smit Salvage’s parent firm Boskalis, said in a Wednesday interview with Dutch TV program Nieuswuur that refloating the Ever Given could take a few days to a week due to the limited draft in the portion of the canal where it is grounded. As such, the salvage operation may include removing the containers and removing fuel from the vessel.
As of noon GMT Thursday, there were a total of 102 ships waiting at the southern Red Sea end of the canal, 22 of which are Europe-bound container ships with a combined capacity of 160,500 TEU. At the northern end in the Great Bitter Lakes, and at the Port Said anchorage, 60 ships are currently waiting, eight of which are container ships with a combined capacity of 42,500 TEU.
This incident is adding new pressure to global supply chains, and is affecting a tenth of the world's seaborne oil trade. Oil prices are already being driven up and could add further delays and increased costs to logistics operations.
For more information on the event, read the latest news from AP: Egypt races to dislodge giant vessel blocking Suez Canal.
We understand this event may affect your business. If you have any questions or concerns, please reach out to your account manager who can assist you.