It’s been almost a week since Ever Given container ship ran aground and closes Suez Canal, causing an unprecedented “traffic jam” and suffocation in the international movement of ships. At least 369 other ships are waiting to cross the canal, the 16 Greek.
A few hours ago it became known that the giant ship is 80% back in the “right direction”. Osama Rabia, president of the Suez Canal Authority, also said that the stern of the boat “was 102 meters away from the shore while it was only four meters away”.
Further details on restoring the canal were not disclosed, with the Egyptian official assuring that navigation would resume “after the end of operations to fully sail the vessel, which will then head to the waiting area” to to block the channel.
Richard Mead, editor-in-chief of the shipping magazine Lloyd’s List, told the BBC that a source involved in the operation confirmed that Ever Given was able to return to voyage at around 4.30am local time today. “It is clear that the Suez Canal will reopen later today, as soon as they have undergone a full inspection,” he said.
The situation that has developed in recent days has caused concern and irritation in the global shipping industry.
The αριθ huge numbers
The ship Ever Given has length 400 meters and weight 220,000 tons, with maximum capacity 20,000 containers. It currently carries 18,300 containers. It is one of the largest container vessels.
It ran aground last Tuesday and to date the cause of the incident has not been clarified. Admiral Rambia referred to a possible “human error” during a press conference he gave on Saturday. Previously, various sources suggested strong winds and a sandstorm as possible causes.
At least 369 ships are waiting to cross the 193 km long canal on both sides, resulting in an unprecedented “traffic jam” has been created.
How much does it cost to block the canal?
About 12% of world trade, about one million barrels of oil and about 8% of liquefied natural gas pass through the canal every day.
As it became known on Saturday, revenues of 14 to 15 million dollars are lost every day that the canal remains closed. Prior to the pandemic, trade through the Suez Canal accounted for 2% of Egypt’s GDP, according to Moody’s.
At the same time, data from Lloyd’s List showed that the ship blocks $ 9.6 billion in daily trade. That equates to $ 400 million and 3.3 tons of cargo per hour or $ 6.7 million per minute, according to the BBC.
German insurance company Allianz said on Friday that its analysis showed that blocking the canal could cost world trade between $ 6 billion and $ 10 billion a week and reduce annual trade growth by 0.2 to 0.4 percentage points.
Some boats are redirected to avoid the Suez Canal. This adds about eight days to their total travel.
Countless businesses have been affected
The closure of the Suez Canal does not only affect the global shipping industry or the Egyptian economy – it also affects countless businesses, from domestic transport providers to retailers, supermarkets and manufacturers.
The actual damage and cost is difficult to estimate until the ship is fully released and trade resumes., but many companies will have to make critical decisions if the blocking continues.
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