Impact of the blockade of the Suez Canal
Last saturday April 17th, all backlogged ships crossed the Suez Canal and traffic was back to normal, 5 days after Ever Given refloating. But the final impact of this incident will be affecting all trades and business supply chain:
To the international trade routes by:
- Delays in all ocean trades schedules in a context of high demand and overbooking.
- Increase in freight rates and surcharges.
To supply chains by:
- Delay in arrival / departure of necessary raw materials.
- Possible stoppages of production lines.
As always, we are here to meet all your needs, with specialists in all trades, transportations and logistics. Feel free to contact us so we can help supporting your supply chain.
Maritime traffic on the Suez Canal resumes
The Suez Canal recovers its activity after the Ever Given was fully refloated yesterday and transferred to the Great Bitter Lake where it will be revised.
After the ship reached its new location, a convoy of 43 ships that was waiting on that same lake resumed navigation, although the queue to cross the channel is more than 400 ships.
If the predictions of the head of the Suez Canal Authority are fulfilled, the blockage in the canal will be resolved in approximately 3 days, but the effects on the market could extend to 2 or 3 months.
The Ever Given, finally refloated
Taking advantage of the high tide peak, a fleet of tugboats has managed to refloat Ever Given the bow and is already moving.
Now, the affected canal area will be reviewed and repaired if necessary, so that maritime traffic will be able to resume soon to release the more than 425 affected vessels.
The Ever Given is partially refloated
During the early hours of Monday the Ever Given has been partially refloated. This has made it possible to correct the direction of the ship and move it away from the shore.
Throughout the morning, when the water level rises to its highest point, work will be resumed to try to remove the ship and be able to re-establish maritime traffic.
Meanwhile, shipping companies are redirecting some of their ships to the Cape of Good Hope in southern Africa to lighten the number of ships in queue
The Suez Canal remains blocked
After 48 hours of proactive efforts to re-float Ever Given, the time chartered vessel’s grounding situation has not been resolved.
The shipowner confirms that the crew, ship and cargo are all safe, and no marine pollution has materialized.
This situation will cause significant delays in the movement of goods. We are closely following the latest news in this regard to be able to act quickly and try to minimize, as far as possible, the delays caused.
The Middle East, IPBC and Far East trade lines, the most affected
Efforts to unload the Evergreen ship from the Suez Canal, global trade artery, which carries about 12% of global trade, continue.
So far, 200 container vessels could be affected. Efforts are being made to move all north bound vessels out of the canal to facilitate a clear passage and continuous convoys when the Evergreen vessel has successfully been released.
While ETAs are jeopardized as salvage efforts continue, the impact on the global supply chain as a result of the vessel blockage in the Suez Canal depends on how long the route remains impassable.
We are closely following the refloating operations, while we will continue to keep you informed of further developments, being main Trade Lanes affected Middle East, IPBC & Far East.
The container ship Ever Given blocks the Suez Canal
The Ever Given vessel of the Evergreen company ran aground in the Suez Canal at around 8 am local time on March 23. This accident occurred at 6 nautical miles from the southern entry of the Canal as the container ship proceeded northbound through the waterway from the Red Sea. Gusting winds of 30 knots caused the container ship to deviate from its course, suspectedly leading to the grounding.