Check Out Money Cost Of The Suez Canal Blockage In The Shipping Industry

Write: Amewunoo Walter

GITFIConline.com

A Taiwanese mega-container ship operated by Evergreen Marine has been wedged in the Suez Canal last Tuesday has been reportedly freed from the shoreline according to the Suez Canal Authority.

The authority emphasized that effort to move the boat would resume later on Monday adding that traffic will be able to resume along the carnal within hours. The global shipping industry is worried and frustrated about the situation as the Ever Given which is  400m long and weighs 200,000 tonnes is carrying 18,300 containers.

One of the largest container vessels became stranded on Tuesday after running aground and became lodged across the waterway. Every day about 12% of global trade around one million barrels of oil and liquefied natural resources of 8% passes through the canal. Osama Rabie, SCA chairman said on Saturday that the Canal was taking $14m to $15m for each day of the blockage however before the global pandemic, the trade passing through Suez Canal contributed 2% to Egypt’s GDP according to Moody’s.

Each day, the stranded ship was holding up an estimated $9.6bn of trade along the waterway looking at separate data from Lloyd’s List. German insurer Allianz made its analysis known on Friday that the blockage could cost global trade between $6bn to $10bn a week and could reduce annual trade growth by 0.2 to 0.4 percentage points.