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Container Ship Blocking the Suez Canal is Freed

Container Ship Blocking the Suez Canal is Released

In the latest challenge to European business recovery, the commercial world’s attention is currently focused on the Suez Canal – a major commercial artery & one of the world’s busiest trade routes – which has been made impassable for the past 6 days after the container ship ‘Ever Given‘ ran aground.

On the morning of 29th March, following huge efforts by the Egyptian authorities and various international salvage specialists, the 400m-long ‘Ever Given’ was reported to have been re-floated successfully.

The ship weighs more than 200,000 tonnes and is carrying 18,300 containers onboard.

The rescue efforts have excavated more than 27,000 cubic meters of sand from beneath the ship and 14 tug boats have spent several days attempting to turn the ship back into the central channel. Early this morning the authorities confirmed that the ship blocking the Suez Canal had been partially re-floated; it was subsequently confirmed that the other waiting vessels might resume their journeys through the channel from 1900 local time (1800 CET).

The 193k-long Suez Canal is the preferred route for all commercial vessels carrying freight between the countries of the Far East and Europe. 12% of all global trade passes through the Canal and whilst ships can detour south around the African continent, the journey time is typically 14 days longer than the direct, shorter voyage via Suez.

Data from expert sources suggest that the ‘Ever Given’ crisis has held up the transport of goods worth USD $5.6bn each day.  ‘The Wall Street Journal’ is one of many news sources quoting German insurance giants Allianz, who estimate the negative impact of the ship blocking the Suez Canal to b

e as much as USD $10bn per week.

The Eurocoin Team continues to consult extensively with our international freight agents, to identify which (if any) of our scheduled Q2 component deliveries from our global manufacturing partners may be impacted.

We are updating customers regularly as we receive information, in order that all parties may plan for the inevitable logistics delays.

Though the better news today is most welcome, there are more than 360 ships help up in the queue, waiting to pass through the Canal.

 

 

 

Accordingly, based upon the feedback received, our current update to customers with goods on route to Europe via sea is as follows:

  • Anticipate there could be delays in receiving orders previously scheduled for April/May 2021
  • Congestion at European ports is expected, as the delayed ships arrive to be unloaded
  • Sea freight shipping prices between Europe and Asia have already risen as a result of the crisis
  • Additional demand for air-freight and rail-freight transport from Asia is likely to also increase costs & lead-times

Please consult directly with your regional Eurocoin Representative, who is being fully briefed as this situation unfolds and further information is being made available from the shipping companies.

Given the major challenges already being faced by European manufacturing businesses in past months, a ship blocking the Suez Canal was not what industry needed right now….we remain on-hand for our clients in order to provide the best advice and solutions possible to this latest set-back to business. Fingers crossed, there will be a return to ‘normal business’ in the days & weeks ahead.

For more information, please Contact Us here