Suez Canal Blockage: Dislodging Ever Given Ship Could Take Up To Weeks

  • March 27, 2021 01:53 AM AEDT
  • Team Kalkine
    Team Kalkine
    Team Kalkine
    22317 Posts

    Team Kalkine comprises of experts who understand various markets nuances and are enthusiastic and passionate to provide best possible offerings in the form of insights and stories. The team has rich experience of working across different markets with...

Suez Canal Blockage: Dislodging Ever Given Ship Could Take Up To Weeks

Source: Avigator Fortuner, Shutterstock

Summary

  • Dislodging a 1,300-feet long vessel, weighing two lakh tons, is proving to be quite challenging for the tugboats and diggers.
  • At least US$ 9.6 billion worth of goods passes through the canal every day.
  • Around 160 ships carrying oil and goods are stuck due to the blocked waterway.

Rescue efforts continued to re-float the 200,000-ton Ever Given container vessel struck in the Suez Canal waterway. However, reports claim that it may take at least a week or more to complete the task and disruptions in global supply chains will continue. Dislodging a 1,300-feet-long vessel weighing two lakh tons is proving to be quite challenging for the tugboats and diggers engaged in the operation. 

Ever Given has appointed heavylift and maritime infrastructure company Royal Boskalis Westminster to move the vessel and reports suggest that its CEO Peter Berdowski said that the rescue operation could take a few more days or even weeks.

Japan-based Shoei Kisen Kaisha, the owner of Ever Given, released a statement explaining that the situation is very difficult and is apologetic for the unfortunate incident that has disrupted the world. 

Why is the Suez Canal so important?

The ship needs to be moved as soon as possible because it plays a significant role in global trade. The canal enables the ships and tankers to avoid taking the trip around the southern tip of Africa that helps in reducing the time for transporting the goods.

According to Llyod's list, at least US$ 9.6 billion worth of goods pass through the canal every day and 1.2 billion tons of cargo pass through it.

Image for representational purpose (Source: Pixabay)

 

What is the effect on supply chain?

 

While this incident will not have a significant impact on the United States, it will cause serious damage to Europe's supply chain. If goods are coming from Asia, then the Suez Canal is the best route for transporting them. Several things like cotton from India, oil from the Middle East and auto parts from China will now reach late to Europe and operations may be disrupted.

Media reports suggest that at least 160 ships carrying oil and goods are stuck due to the blocked waterway. It is expected that the incoming ships will have to anchor in the Red Sea and the Mediterranean.

The incident also means that the supply of three to five million barrels of oil per day will be delayed.

 


Disclaimer
The website https://kalkinemedia.com/ca is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001. The principal purpose of the content on the website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK