Suez Canal Blockade Costing About $400 Million An Hour
WMN..There’s no denying that the Suez Canal is the world’s most important waterway. The reason: about 12% of the global trade flowing through a single canal, one connecting two continents- Asia and Europe. The canal is so strategic that world powers have fought over the waterway since it was completed in 1869.
During WWII, one of the main factors which ensured Allied victory was the ability of their troops to keep the supply chain flowing by controlling the Suez, which was constantly under Axis shelling.
As FleetMon reported on the grounding of Ultra Large Container Vessel EVER GIVEN on Mar 23, authorities have been constantly trying to use tugs and diggers to dislodge the massive 400m long container ship, but to no avail. This is increasing the chances of a prolonged delay in the global supply chain, which can amplify the woes of commoners around the world.
The situation has gotten so frantic that an elite salvage squad will be arriving today to work on prising the EVER GIVEN from the bank of the canal, where it’s obstructing ocean-bound carriers, ranging from bulk carriers, all the way to oil tankers and container ships.
However, as per Nick Sloane, the salvage master responsible for refloating the Costa Concordia, it’s safe to say that the best chance for freeing the ship may not come until Sunday or Monday when the tide will reach a peak.
Greg Knowler, the European editor at JOC Group, which is part of IHS Markit Ltd, said, “The Suez Canal blockage comes at a particularly unhelpful time. Even a two-day delay would further add to the supply chain disruption slowing the delivery of cargo to businesses across the U.K. and Europe.”
Around 185 vessels, mostly bulk carriers, container ships, and oil or chemical tankers, were waiting to cross the canal on Wednesday.
This highlights a major risk factor in the global supply chain: the existence of maritime chokepoints. Similar other chokepoints exist in the Suez, Panama Canal, the Strait of Hormuz, and Southeast Asia’s Malacca Strait. report by FleetMon online..
During WWII, one of the main factors which ensured Allied victory was the ability of their troops to keep the supply chain flowing by controlling the Suez, which was constantly under Axis shelling.
As FleetMon reported on the grounding of Ultra Large Container Vessel EVER GIVEN on Mar 23, authorities have been constantly trying to use tugs and diggers to dislodge the massive 400m long container ship, but to no avail. This is increasing the chances of a prolonged delay in the global supply chain, which can amplify the woes of commoners around the world.
The situation has gotten so frantic that an elite salvage squad will be arriving today to work on prising the EVER GIVEN from the bank of the canal, where it’s obstructing ocean-bound carriers, ranging from bulk carriers, all the way to oil tankers and container ships.
However, as per Nick Sloane, the salvage master responsible for refloating the Costa Concordia, it’s safe to say that the best chance for freeing the ship may not come until Sunday or Monday when the tide will reach a peak.
Greg Knowler, the European editor at JOC Group, which is part of IHS Markit Ltd, said, “The Suez Canal blockage comes at a particularly unhelpful time. Even a two-day delay would further add to the supply chain disruption slowing the delivery of cargo to businesses across the U.K. and Europe.”
Around 185 vessels, mostly bulk carriers, container ships, and oil or chemical tankers, were waiting to cross the canal on Wednesday.
This highlights a major risk factor in the global supply chain: the existence of maritime chokepoints. Similar other chokepoints exist in the Suez, Panama Canal, the Strait of Hormuz, and Southeast Asia’s Malacca Strait. report by FleetMon online..
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