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Massive ship blocking the Suez Canal brings billions of dollars in trade to a standstill

Massive ship blocking the Suez Canal brings billions of dollars in trade to a standstill thumbnail

The massive container ship Ever Given has been stuck in the Suez Canal for three days, halting billions of dollars in trade as vessels pile up at both ends of the waterway.

More than 150 ships are waiting to pass through the 120 mile canal, according to estimates from research firm StoneX.

Images captured from vessel tracker MarineTraffic show the extent of the buildup.

A graph showing shipping traffic halted around the Suez Canal after the ship Ever Given began wedged in the canal.
A graph from MarineTraffic showing shipping traffic halted around the Suez Canal after the ship Ever Given became wedged in the canal.
Source: MarineTraffic
A graph showing shipping traffic halted around the Suez Canal after the ship Ever Given began wedged in the canal.
A graph from MarineTraffic showing shipping traffic halted around the Suez Canal after the ship Ever Given became wedged in the canal.
Source: MarineTraffic

The canal handles around 12% of seaborne trade, making it an essential point of passage. Each day of blockage disrupts more than $9 billion worth of goods, according to The Associated Press, citing estimates from Lloyd’s List.

Research firm StoneX noted that 24 of the vessels are carrying crude, 15 are refined product tankers, and 16 are liquified natural gas/liquified petroleum gas product carriers.

For ships waiting to pass through the canal, alternate options are limited.

“As delays continue, shippers will have to broach the unpalatable decision of whether to make a U-turn and head for the Cape of Good Hope or wait it out in the Red Sea and Mediterranean,” commodity data company Kpler said in a note to clients.

Rerouting significantly increases a trip’s length, which translates to higher costs. Sailing from the Suez Canal to Amsterdam takes just over 13 days when traveling at 12 knots, compared with 41 days if traveling around the Cape of Good Hope on the southern tip of Africa.

Stranded container ship Ever Given, one of the world's largest container ships, is seen after it ran aground, in Suez Canal, Egypt March 25, 2021.
Stranded container ship Ever Given, one of the world’s largest container ships, is seen after it ran aground, in Suez Canal, Egypt March 25, 2021.
Suez Canal Authority | Reuters

“The event highlights the relative fragility of the on-water trading system, particularly for those flows for which Suez Canal transits make up a higher percentage of total volumes moved,” the firm added.

The ship became horizontally wedged in the waterway following heavy winds. Multiple tugboats were sent to the scene, and a team from Smit Salvage has been called in to assist.

“Dredging operations to assist refloating the vessel continue. In addition to the dredgers already on site a specialised suction dredger has arrived at the location,” said Bernhard Schulte Shipmanagement, which is the technical manager of the vessel. The firm said an early attempt to refloat the vessel on Thursday was unsuccessful, and that another attempt would be made later in the day.

The enormous cargo carrier is more than 1,300 feet long and about 193 feet wide. It weighs more than 200,000 tons. One end of the ship was wedged into one side of the canal and the other stretched nearly to the other bank.

Nearly 19,000 ships passed through the canal during 2020, for an average of 51.5 per day, according to the Suez Canal Authority. The ship was sailing from China to Rotterdam when it ran aground.

Lt. Gen. Ossama Rabei, center, head of the Suez Canal Authority, with a team walk along the bank of the Suez Canal where the Ever Given, a Panama-flagged cargo ship, has become wedged across the Suez Canal and blocking traffic in the vital waterway. An op
Lt. Gen. Ossama Rabei, center, head of the Suez Canal Authority, with a team walk along the bank of the Suez Canal where the Ever Given, a Panama-flagged cargo ship, has become wedged across the Suez Canal and blocking traffic in the vital waterway. An operation is underway to try to work free the ship, which further imperiled global shipping Thursday as at least 150 other vessels needing to pass through the crucial waterway idled waiting for the obstruction to clear.
Suez Canal Authority | AP

Oil prices jumped about 6% on Wednesday with West Texas Intermediate crude futures and Brent crude futures posting their best day since November. But by Thursday the contracts were back in the red because of demand concerns amid lockdowns in Europe.

The canal’s blockage exacerbates supply chains that were already strained amid the disruptions caused by Covid-19.

“While it remains premature to assess the full impacts arising from the incident, our channel checks indicate within the near term, the blockage is likely to add to industry supply strains, which are already hampered by ongoing supply chain bottlenecks (port congestion and vessel/container shortages) caused by COVID-19 as liners re-route current voyages to alternative routes which will result in longer voyage times and causing further delays,” JPMorgan wrote in a note to clients.

Planet Labs Satellite image of Suez Canal shipping traffic halted due to ship run aground
Planet Labs Satellite image showing shipping traffic halted due to the Ever Given container ship run aground (top left) in the canal.
Source: Planet Labs


17 Comments on "Massive ship blocking the Suez Canal brings billions of dollars in trade to a standstill"

  1. Cloggie on Fri, 26th Mar 2021 2:38 am 

    Yesterday on the German news: damage $400 million/hour. Cumulative damage yesterday: $25B.

    No worries though, bring in the Dutch!

    https://www.theguardian.com/world/2021/mar/25/suez-canal-blocked-ship-ever-given-stuck

    “Suez canal: Dutch and Japanese teams called in to help free ship”

    When it comes to maritime operations, stranded vessels, water management, oil platforms, dikes, sub-sea pipelines, offshore wind installations, the Dutch are second to none, and they are guaranteed to fix it:

    https://www.youtube.com/results?search_query=smit+tak+salvage

    Maritime champ since the 17th century:

    The Dutch navy preparing for the 1688 invasion of the British Isles and subsequent regime change:

    https://parisberlinmoscow.files.wordpress.com/2020/08/departure-of-william-iii-from-hellevoetsluis-19-october-1688.jpg?w=768&h=567

    Dutch VOC ships in the Far East in the 17th century:

    https://parisberlinmoscow.files.wordpress.com/2020/08/voc-ships.png?w=768&h=544

    The Dutch Pioneering Spirit, the largest ship in the world, that build Nord Stream 2, in record time (minus the last 150 km). Nobody else in this world can do that:

    https://www.nord-stream2.com/media-info/videos/61/

  2. Cloggie on Fri, 26th Mar 2021 11:13 am 

    Pat Buchanan thinks that Nord Stream 2 is going to be finished and that Washington is bluffing about biting sanctions. And no, US troops won’t leave Europe.

    https://www.unz.com/pbuchanan/why-putins-pipeline-is-welcome-in-germany/

    (a clear sign of diminishing US power over its vassals, um… allies)

  3. Biden's hairplug on Fri, 26th Mar 2021 11:24 am 

    China already won:

    https://www.unz.com/article/should-we-compete-with-china-can-we/

    There is no other option for Europe than to team up with Russia to balance China. A few additional “white reserves” in North-America (à la the Indian reserves) could come in handy too.

  4. YouAreGoodStupidPieceOfShit on Fri, 26th Mar 2021 1:51 pm 

    You guys are genius.This is a good one I give you that. You suck a container ship in the canal of suez to teach to people about supply chain and maritime supply chain. This is fucking good idea. Put this all over the news and talk about supply chain, maritime cargo shipping and oil shipping. User this as an opportunity to educate people about international trade, why oil is important, peak oil, how many products are made with oil. You fucker are good. I gives you stupid piece of shit.

  5. YouAreGoodStupidPieceOfShit on Fri, 26th Mar 2021 2:03 pm 

    Dont forget to put little cartoon in your education segment that you will pass on evening news. People understand better if it visual. This is free advice from me. It won’t happen often.

  6. IDidSomeOfTheWorldForYouLosers on Fri, 26th Mar 2021 2:32 pm 

    I will be nice with you stupid piece of dog shit. You could start with something like this on the evening news.

    Today we are going to talk about the consequences of the blocking of Suez canal. We will talk about the consequences on oil production and how it could affect daily lives of people around the world. Let’s start with this graphic that illustrate oil extraction. As we see in this graphic we have a oil well and a reservoir below.. ………………s

  7. IDidSomeOfTheWorkForYouLosers on Fri, 26th Mar 2021 3:04 pm 

    When a giant ship blocks Egypt’s Suez canal and throws the world in a tizzy

    https://www.youtube.com/watch?v=EVTRcNMciEQ

    The idea is good but the implementation sucks ass. You need little animated graphics with arrow and words, people have a limited vocabularies and cannot related to this kind of presentation.

    You need multiples segments that could last up to a month including manufacturing, distribution, highway system and trucking supply chain and son on

  8. DeepFakeAreEverywhere on Fri, 26th Mar 2021 3:15 pm 

    This is another deep fake. They are everywhere now. From all around the world.

    https://www.youtube.com/watch?v=X2AAUUBK6pA

    goto 2:46 you see what I mean

  9. Cloggie on Sat, 27th Mar 2021 3:33 am 

    Ships have one or two propellers and a rudder and that’s all they have for maneuvering, which is extremely little. Ships are equipped to move forward only. There is a reason why huge ships need tug boats to safely enter the harbor. Without them, they would crush other ships or the quay.

    These towering container ships are vulnerable to wind gusts from the side, with stacked containers acting as huge sails.

    In the future, these ships will need to be tugged through the Suez Canal in order to prevent similar accidents from happening.

    The likely solution for this ship will probably come from unloading 600 containers from the front side, which is easier said than done, because all they have there is desert, so they need a crane ship. Or perhaps simply throw a few hundred containers overboard, which is probably the cheapest solution for the owner/ensurer.lol

  10. Cloggie on Sat, 27th Mar 2021 6:22 am 

    Russia to the rescue.lol

    “Russia promotes Arctic sea route as viable alternative to blocked Suez Canal”

    https://www.rt.com/business/519245-suez-canal-russia-northern-sea-route/

    Russia is not exactly the world’s most environmentally conscious nation.

  11. Biden's hairplug on Sat, 27th Mar 2021 9:43 am 

    The Russians, Iranians and Indians (those from India) are promoting an alternative transport route:

    https://parisberlinmoscow.wordpress.com/2021/03/27/international-north-south-transport-corridor/

    “International North–South Transport Corridor”

  12. Cloggie on Sat, 27th Mar 2021 12:36 pm 

    “Containerschiff »Ever Given« möglicherweise zu Wochenbeginn frei”

    https://www.spiegel.de/wirtschaft/unternehmen/bergungsunternehmen-smit-savage-containerschiff-ever-given-moeglicherweise-zu-wochenbeginn-frei-a-f5d9c170-f6cf-4e0f-976e-bbfc5432a0ce

    A spokesman from the Dutch salvage firm Smit-Tak has said on Dutch television that there is a good chance that the ship will float again by early next week.

    If against expectation, containers need to be unloaded, it will take a few days extra.

  13. makati1 on Sat, 27th Mar 2021 4:41 pm 

    “Russia is not exactly the world’s most environmentally conscious nation.”

    Well, it is far cleaner than Amerika, if you count the pollution caused by making the stuff the US now imports from other countries where they exported their pollution to. Not to mention that the US military pollutes more than a small country. The US is just better at hiding their pollution.

  14. Cloggie on Sun, 28th Mar 2021 9:03 am 

    “Ship was moved over 100 feet today”

    https://www.dailymail.co.uk/news/article-9411167/Race-free-Given-enters-SIXTH-day-Two-tugboats-speed-Suez-Canal-join-efforts.html

    Expect it to be freed very soon, perhaps even today.

  15. Cloggie on Mon, 29th Mar 2021 1:20 am 

    The ship is partially floating again, the rear end is free. The bow is still stuck in the mud.

    https://www.spiegel.de/wirtschaft/containerschiff-ever-given-im-suezkanal-freigelegt-a-67786fcd-21ee-4b67-8494-e0ac09d9450a

    “Containerschiff »Ever Given« im Suezkanal freigelegt”

    https://www.youtube.com/watch?v=1UNbvO5U700

  16. Biden's hairplug on Mon, 29th Mar 2021 5:30 am 

    Who needs the Suez Canal? Transport of goods between Europe and China doubled between 2019 and 2020, according to the Financial Times:

    https://www.infowars.com/posts/belt-and-road-china-reportedly-doubled-freight-shipping-to-europe-via-russia-central-asia-before-suez-jam-up/

    These are the messages that shape world history.

    2000 freight trains EU-China in January and February 2021 alone.

    EU-US trade is declining, both ways.

    The EU has a large trade deficit with China, but overall a trade surplus with the entire world, so we can afford Chinese cheap imports.

    The positive side effect for Europe is that a last-minute US-Chinese alliance is unlikely, since the US can’t match the EU in trade vis-à-vis China and China has no need for more printed dollars without counter value. And China has invested so many trillions in their anti-NWO overland New Silk Road strategy, that a sudden change is virtually impossible.

    The EU should complete Nord Stream 2 and not further antagonize the US and simply let time work for itself:

    – the EU should cook-up its competition with England and quietly diplomatically encourage Scotland and Ulster (and even Wales) to secede, by secret deals with the EU, after the controlled demolition of the UK
    – let China grow in strength until it is strong enough to challenge the US in the SCS and over Taiwan
    – do not let yourself being pushed by the US in a war with Russia, like the US pushed France and Britain in a war with Germany
    – don’t interrupt the Democrats, led from behind by the youknowwho, in their (futile) attempts to finish off American whitey once-and-for-all. The only thing they will finish off once and for all is ZOG.
    – wait for the ticking ethnic North-American time-bomb to go off and be prepared to expand the European sphere of influence deep into North-America, as if “1776” never happened and rake in US white nationalists. Hopefully, the EU-Russia meets Chinese troops as far West in North-America as possible, hopefully not too far from the gates of Vancouver, the North-American equivalent of Torgau-1945:

    https://tinyurl.com/285hsdpt

  17. Cloggie on Mon, 29th Mar 2021 9:12 am 

    Suez Canal cleared again:

    https://www.spiegel.de/wirtschaft/soziales/ever-given-faehrt-wieder-blockade-im-suezkanal-aufgehoben-a-81290628-82d3-40f0-8d4f-f43b27a8ce60

    “Die »Ever Given« fährt wieder”

    #LeaveItToTheDutch

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