KAIRO, KOMPAS.com – Dozens closed cargo which carries everything from oil to consumer goods jams on Suez Canal, Egypt.
Companies are likely to have to reroute their cargo ships around Africa if congestion on the Suez Canal exceeds 24 hours.
The congestion of the container ships on the Suez Canal was triggered by a container ship which got stuck after being pushed by a strong gust of wind.
Reported Kompas.com previously, the container ship that got stuck was named Ever Given, which is also called the “Mega Ship”.
Also read: Jams Suez Canal, Large Container Ship Clogs International Trade Routes
Ever Given weighs 220,000 tons and is 400 meters long. This container ship got stuck near the southern end of the canal on Tuesday (23/3/2021).
Efforts continued until Wednesday (24/3/2021) to float Ever Given back as reported Reuters.
A number of sources from the sector cruise told to Reuters that the congestion has disrupted regular shipping through the Suez Canal.
The canal is one of the world’s most important shipping points and the fastest connecting sea route Asia and Europe.
Also read: History of the Suez Canal
Commodity market intelligence organization, Kpler, said more than 20 tanker ship which brings crude oil and processed products are affected by the disturbance.
The Suez Canal is also a major shipping route for carrying tankers natural gas which is diluted (LNG).
A total of seven LNG tankers were trapped on Wednesday according to data obtained from the Refinitiv ship tracking system.
Any delays in shipping and disruption of shipping could have a direct impact on European LNG and gas prices.
Also read: Today in History: Construction of the Suez Canal Begins
On the other hand, there are more than 13 container ships anchored around the Suez Canal while at least two others are waiting in the Mediterranean.
AP Moller Maersk, the world’s largest container shipping company, said as many as seven of its ships had been affected by congestion on the Suez Canal so far.
The company added that as many as four of the ships were trapped in the Suez Canal while the rest were waiting to enter the route.
“The next 24 hours will be critical in determining the long-term impact,” said Chris Evans, an international supply chain specialist with professional services firm Colliers.
Also read: Tano Ponggol Will Be Converted Into Indonesia’s Suez Canal
“If there are significant delays, then the Cape of Good Hope (in South Africa) will likely serve as an alternative route to keep things going,” added Evans.
Even before the incident on the Suez Canal, the shipping system had a bit of a “shock”.
The reason is, the shipping system is disrupted by the corona virus pandemic while the demand for retail goods has actually soared.
Also read: Over 140 Years Old, Here Are 6 Interesting Suez Canal Facts
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