Up To $9.6bn Of Products Are Held Each Day Due to Suez Blockage

The stranded Ever Given mega-container ship within the Suez Canal is holding up an estimated $9.6bn (£7bn) of products every day, consistent with shipping data.

This works out at $400 man-hour in trade along the waterway which may be a vital passageway between east and west.

Data from shipping expert Lloyd’s List values the canal’s westbound traffic at roughly $5.1bn a day, and eastbound daily traffic at around $4.5bn.

Despite efforts to free the ship, it could take weeks to get rid of experts say.

The Ever Given, operated by the Taiwanese company Evergreen Marine, is that the length of 4 football pitches and one of the world’s biggest container vessels. The 200,000-tonne ship is capable of carrying 20,000 containers.

Its blockage is causing huge tailbacks of other ships trying to undergo the Suez Canal.

Container ships have nearly doubled in size within the past decade as global trade expands, making the work of moving them much harder once they grind to a halt.

“What are we thinking? Have vessels gotten too large? Containers being jettisoned overboard, delayed transits thanks to terminal congestion and allow us to not forget the long line of vessels at many ports expecting a berth,” said Jon Monroe, who runs his ocean transportation consultancy.

The canal, which separates Africa from the center of East and Asia, is one of the busiest trade routes within the world, with about 12% of total global trade moving through it.

Along with oil, the ocean traffic is essentially consumer products like clothing, furniture, manufacturing components, and car parts.

According to Lloyd’s List tracking data, quite 160 vessels are waiting at either end of the canal. These include 41 bulk carriers and 24 crude tankers.

BIMCO, a world shipping association, says the delays will only still grow and affect supplies.

“For every day of delay my thought is it’ll take two days to undo the delays,” said Alan Baer, president of logistics provider OL USA.

“Right now, three days creates six days of ongoing delays. I’m unsure this is often an ideal formula, but it’ll be close,” he said.

In addition to delaying thousands of containers loaded with consumer items, the stranded ship has also engaged empty containers which are needed for exports.

Some companies are going to be considering flying replacement merchandise for higher-value products or transporting them via trains.

Two major shipping companies, Maersk and Hapag-Lloyd, said they’re looking into options to avoid the Suez Canal.

Egypt’s Suez Canal Authority (SCA) said it had been doing all it could to refloat the ship with tug boats, dredgers, and heavy earth-moving equipment.

Leave a Reply

Your email address will not be published. Required fields are marked *