Wednesday, March 31, 2021
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This is how a container ship stuck in the Suez Canal is hurting the world economy – there are already 160 tankers and cargo ships in line – Taloussanomat

According to expert estimates, it may take days to dismantle the Ever Given cargo ship, which originated in China.

European and the Suez Canal in Egypt, which is vital for freight traffic between Asia and Asia, was blocked on Tuesday after the Ever Given cargo ship froze across the canal. Before the accident, one of the largest cargo ships in the world was en route from China to the Netherlands.

The matter was reported by, among others, the US news agency CNN, according to which 12% of world trade passes through Suez, which connects the Mediterranean and the Red Sea. The value of daily deliveries is EUR 8 billion. In 2020, the canal was crossed by more than 18,000 vessels.

Due to the accident, at least 160 cargo and fuel carriers are currently awaiting the opening of the route in the waters. According to CNN, a total of 30 percent of the world’s container traffic passes through the channel.

The 400-meter giant ship is firmly attached to the bottom of the canal.­

According to the news agency, the stuck vessel is 400 meters long and 59 meters wide. The shipping company says the accident was caused by a sudden wind and a sandstorm.

Freight experts are concerned about the situation, and the decommissioning work is estimated to take days. CEO of Boskalis, a company involved in the project Peter Berdowski told a Dutch television channel that the ship was in good condition anyway.

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“But my first impression is that it’s stuck very hard,” Berdowski said, according to CNN.

According to CNN, authorities should remove up to 20,000 cubic feet of sand from the canal to allow the vessel to move forward.

Freight traffic to Asia has already suffered from difficulties. Director of the logistics company DSV Air & Sea Oy Aki Lönnroth told Taloussanomat in February that the root cause of the problems is the corona pandemic.

Attempts to dismantle the ship have so far failed.­

Contrary to preliminary estimates, the pandemic rather increased demand for goods leaving China. Demand from consumer trade in particular has grown so much that transport capacity is unwilling to meet the challenge.

CNN said Wednesday that as a result of the blockage, oil supplies from Saudi Arabia, the United States, Oman and Russia are expected on both sides of the canal. If it takes weeks to fix the blockage, the consequences are significant, according to an expert interviewed by the news agency Reuters.

Financial magazine Financial Times already on Wednesday said the price of Brent crude oil rose in London.

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