World - The ripple effect on trade of one giant ship stuck in Suez
Ever Given made headlines yesterday following its grounding in one of the key bloodlines of the global trade, namely the Suez Canal.
Specifically, 12% of world trade takes place through the Suez Canal, and estimates from Bloomberg indicate that the blockage has halted $9.6 billion worth of traffic a day.
The colossal ship, spanning 400 meters in length and 59 meters in width, ran aground on March 23, at 6 nautical miles from the southern entrance of the canal. At 20,000 TEU capacity, the ship falls into the category of the world’s largest containerships.
Gusting winds of 30 knots and poor visibility are believed to be the likely cause of the grounding, which left the boxship stuck sideways in a narrow point of the waterway.
The position of the ship has blocked the passage of convoys on both sides of the waterway resulting in the build-up of vessels.
It is believed that it would take at least two days to remove the ship and resume shipping in the canal. An external salvage team is also due to be appointed, with reports emerging that Smit salvage experts would be hired for the job.
The ripple effect of the blockage
As the Suez Canal tugs resume efforts to free the ship, which has been partially refloated since Tuesday, the global trade is already feeling the impact.
The Suez Canal Authority said in its latest update that the traffic through the canal would be temporarily suspended today as well, as activities on refloating the ship are resumed.