The growing traffic snarl in the Suez Canal may take several weeks to become uncontrolled – and in the process threatens to wreak havoc on the world economy.
Massive cargo ships crossing the canal are preventing shipments of an estimated $ 9.5 billion per day. The crisis – now in its third day – could drag on for weeks, taking a devastating toll on global commerce as it gets caught in the net of everything from oil to electronics.
At least 150 ships are now stranded behind the Ever Given, a 200,000-tonne cargo ship that sank into the narrow channel on Tuesday. International crude prices rose 6 percent the next day – a move some analysts blamed for concerns about oil shipments originating from Suez.
Meanwhile, logistics experts said the blockage would likely increase delays and cost as delivery of critical goods between Europe and Asia continued, as deliveries of heavy equipment, clothing and even vital medical supplies would continue further. is.
Boscalis CEO Peter Berdowski told the media on Thursday, “We can’t get it out, it could take weeks depending on the situation”. “It is a heavy weight on the sand. We may have to work in conjunction with weight reduction by removing containers, oil and water from ships, sinking tug boats and sand. “
Built over a decade, opened in 1869, the Suez Canal is an artificial Egyptian waterway that connects the Red Sea to the Mediterranean Sea. According to the Suez Canal Authority, the Egyptian state body that operates the channel, about 19,000 vessels moved 1.2 billion tons of cargo last year.
According to shipping data, after moving at a high speed when Ever Given – a 440 million-pound cargo ship, which is the Empire State Building tall – was on its way from Rotterdam to China.
The Wall Street Journal reported on Thursday that the ship’s bow was still lodged deep in a section of the canal, and would require dredging. Workers will need to unload fuel, ballast water, and possibly some of the ship’s cargo. Helicopters may need help. Officials are expecting a high-to-normal tide over the weekend that could help lift the ship for free.
Stranded ships are blocking the route carrying about 13 percent of the world’s trade. On Thursday, the ship’s owner apologized for the mess.
“We are determined to work hard to resolve this situation as soon as possible,” Shoe Kisan Kasha Said in a statement Thursday “We would like to apologize to all parties affected by this incident, including the vessel traveling through the Suez Canal and the plan for the trip.”
If the logjam cannot be undone, experts say cargo companies will be forced to reroute their shipments around the Cape of Good Hope at the bottom of Africa – a detour that would normally cost 14 to the traffic Day and adds 5,000 nautical miles.
Officials said that in the coming weeks and months could send prices for important items including cars, lumber and even important medical supplies.
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