The crisis that started with the Panama-flagged container ship The Ever Green spun out of control in the Suez Canal due to high winds and sandstorms, and then closed the canal in both directions, is deepening. While dozens of ships are unable to continue on their way due to congestion, global maritime trade is experiencing nightmare days. While the daily loss is $ 9.6 billion due to ships not continuing on their way, oil prices are increasing.
CHANNEL OPENING MAY TAKE WEEKS
Maritime firm Lloyd’s List stated that the canal’s westbound traffic is about $ 5.1 billion a day, and ships with about $ 4.5 billion worth of goods pass daily eastbound traffic. However, experts said it could take weeks to lift the ship, despite rescue efforts.
Ever Given, operated by the Taiwanese company Evergreen Marine, owned by Shoe Kisen of Japan, is among the largest container ships in the world at the length of four football fields. The 200,000-ton ship has a cargo capacity of 20,000 containers. The ship jam causes massive returns of other ships trying to cross the Suez Canal.
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However, the canal that separates Africa from the Middle East and Asia is one of the world’s busiest trade routes, hosting about 12 percent of total world trade. Among the products transported are mostly consumer products such as clothing, furniture, spare parts manufacturing and auto parts, along with oil. On the other hand, as world trade expanded over the past decade, container ships have nearly doubled in size, making it even more difficult to rescue them when they get stuck.
MORE THAN 160 SHIPS ARE WAITING
According to data from Lloyd’s List, there are currently more than 160 ships, including 41 bulk carriers and 24 tankers, waiting at both ends of the canal.
Alan Baer, head of logistics provider OL USA, said: “For each day of delay, I think it will take two days to undo the delays. The three days so far have resulted in six-day delays. Empty containers needed to
OIL PRICES WERE 7 PERCENT ON THE SAME DAY
On the other hand, the oil analysis firm Vortexaş said that ten tankers carrying 13 million barrels of crude will be affected by the delay in the ship and that the oil trip to Europe will be extended by 15 days. Therefore, it was stated that there will be a certain amount of increase in control prices. The day after the ship closed the canal, oil prices have already risen 7 percent.
Rescue officials said the congestion, which is a blow to global supply chains that the Covid-19 outbreak is already hitting, could last for days or even weeks. Some companies will send backup copies of their high-value products without delay to their customers on trains. Two major shipping companies, Maersk and Hapag-Lloyd, announced that they are looking for alternative options to avoid the Suez Canal.
On the other hand, Egypt’s Suez Canal Authority (SCA) announced that it is doing everything possible to refloat the ship with tugs, dredgers and heavy earthmoving equipment.
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