Ever Given disrupts logistics blocks Suez Canal
The Suez Canal, one of the world's busiest shipping lanes, has remained blocked by a large container ship, the Ever Given, which wedged sideways across the canal after it ran aground on 23 March. Tugboats and dredgers continue to try to refloat the vessel, which has a capacity of 20,000 [twenty-foot equivalent units (TEUs)], but the traffic in the canal was suspended.
Closure of such a vital waterway has disrupted trade flows for numerous products including chemicals and polymers at a time when international logistics and supply chains are already under strain. Delayed shipments are expected to tighten supplies and lift prices for some key chemical and polymer products, market sources say.
As of 26 March, 237 vessels were waiting in the Suez Canal area. Petrochemicals and polymers shipped from the Middle East and APAC to Europe and North America pass through the Suez Canal. The closure could delay some shipments by up to 10-14 days if the Ever Given is not dislodged this weekend or early next week when there is a high tide.
Even a two days' delay would further add to the supply-chain disruption slowing the delivery of cargo to businesses across the UK and Europe. An option for shipping lines is to reroute vessels around Africa and the Cape of Good Hope, but that will add more than 3,000 nautical miles and another week to the transit time from Asia to Europe.
At the better end, the Mega ship was re-floated on 29 March and was secured. The ship was freed by the Egyptian crew.
