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Suez Canal suspends traffic while efforts to dislodge ship continue

AFRICA
By Reuters | March 26th 2021
A container ship which was hit by strong wind and ran aground is pictured in Suez Canal, Egypt March 24, 2021. [Reuters]

A container ship blocking the Suez Canal like a "beached whale" sent new shockwaves through global trade yesterday as officials stopped all ships entering the channel and the salvage company said it may take weeks to free.

The 400m (430 yard) Ever Given, almost as long as the Empire State Building is high, is blocking transit in both directions through one of the world's busiest shipping channels for oil and grain and other trade linking Asia and Europe.

The Suez Canal Authority (SCA) said eight tugs were working to move the vessel, which got stuck diagonally across the single-lane southern stretch of the canal on Tuesday morning amid high winds and a dust storm.

"We can't exclude it might take weeks, depending on the situation," Peter Berdowski, CEO of Dutch company Boskalis which is trying to free the ship, told the Dutch television programme "Nieuwsuur".

Several dozen vessels, including other large container ships, tankers carrying oil and gas, and bulk vessels hauling grain have backed up at either end of the canal to create one of the worst shipping jams seen for years.

The SCA, which had allowed some vessels to enter the canal in the hope the blockage could be cleared, said it had temporarily suspended all traffic on Thursday.

Beached whale

Thirteen vessels that sailed south from Port Said in a convoy on Wednesday had dropped anchor in the Bitter Lakes waiting area until navigation could be resumed, it said.

Berdowski said the ship's bow and stern had been lifted up against either side of the canal.

"It is like an enormous beached whale. It's an enormous weight on the sand. We might have to work with a combination of reducing the weight by removing containers, oil and water from the ship, tug boats and dredging of sand."

Roughly 30 per cent of the world's shipping container volume transits through the 193km (120 miles) Suez Canal daily, and about 12 per cent of total global trade of all goods.

Shipping experts say if the blockage is unlikely to be cleared in the coming days, some shipping firms may re-route vessels around the southern tip of Africa, which would add roughly a week to the journey.

Consultancy Wood Mackenzie said the biggest impact was on container shipping, but there were also a total of 16 laden crude and product oil tankers due to sail through the canal and now delayed by the incident.

The load of the tankers amounted to 870,000 tonnes of crude and 670,000 tonnes of clean oil products such as gasoline, naphtha and diesel, it said.

According to oil analytics firm Vortexa, Russia and Saudi Arabia are the top two exporters of oil through the canal, while India and China are the main importers.

The ship's GPS signal shows only minor changes to its position over the past 24 hours.

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