Wednesday, March 31, 2021
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Ship in Suez Canal Reported to Block $ 400 Million in Trade Per Hour | NOW

The stranded container ship in the Suez Canal blocks nearly $ 10 billion (more than 8 billion euros) in trade every day, according to estimates by shipping expert Lloyd’s List where BBC writes about. That would mean that 400 million dollars worth of goods are stopped per hour.

Earlier this week, the Taiwanese container ship Ever Given got stuck in the Suez Canal, which is so important for the transport sector. The route is important because it is about 40 percent shorter than the alternative: circumnavigation via Cape of Good Hope in South Africa. This results in days or even weeks of extra sailing time, which also results in additional costs and emissions.

It is still unclear how long it will take before the ship can be pried loose. Topman Peter Berdowski of the Dutch maritime service provider Boskalis, who helps with the detachment of the ship, closed on Wednesday in a current affairs program News hour does not matter that this could take weeks.

Container ships that are now in a kind of traffic jam behind Ever Given, are now considering turning around and still sailing via the very tip of South Africa. Two liquefied natural gas (LNG) tankers bound for Asia from the United States appear to have changed course in the middle of the Atlantic Ocean on Friday to go via the Cape of Good Hope.

Long-term blockage can have economic consequences

If the congestion continues for several weeks, it can lead to economic problems such as empty shelves. “Retailers do not always have large stocks and some products are seasonal, such as garden furniture,” ING economist Rico Luman told on Wednesday. “A large part of that comes from China and it will be difficult to fill the shelves if the ship remains there for a long time. But it will also be difficult for stores such as Action to keep the supply up to standard.”

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In addition to empty shelves, a ride to the gas station could also become more expensive. “A lot of oil products are being transported through the Suez Canal and you could see oil prices reacting on Wednesday,” Luman said. “It will take a while until we see that at the pump, but there is a good chance that prices will rise there as well.”

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