July 24, 2021

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Cargo ship blocking Suez Canal has been refloated, says maritime services company – CNBC

3 min read

Maxar Technologies’ WorldView-2 collected new high-resolution satellite imagery of the Suez canal and the container ship, Ever Given, seen here stuck in the canal north of the city of Suez, Egypt.

DigitalGlobe/ScapeWare3d | Maxar Technologies | Getty Images

The giant container ship blocking the Suez Canal was refloated on Monday and is being secured, maritime services company Inchcape said in a Twitter post.

But it remains unclear what the condition of the stranded ship is and when the canal would be open to traffic, with Inchcape saying that “more information will follow once they are known.”

Efforts to free the mega vessel, known as the Ever Given, have lasted for nearly a week. The ship became stuck last Tuesday after running aground while entering the Suez canal from the Red Sea.

Ever Given is one of the largest container ships in the world. It is a 220,000-ton mega ship nearly a quarter-mile long with a 20,000 container capacity.

The ship completely blocked the canal that’s home to as much as 12% of the world’s seaborne trade, and caused a traffic jam with hundreds of ships waiting to enter the Suez.

Maritime data showed at least ten tankers and container ships changing course to avoid the logjam at the Suez Canal. Among them are at least two U.S. ships carrying natural gas for Cheniere and Shell/BG Group.

The crisis, now in its sixth day, has added to anxieties over the global supply chain which had already been impacted by the coronavirus pandemic. Each day of blockage disrupts more than $9 billion worth of goods, according to Lloyd’s List, which translates to about $400 million per hour.

Problem not solved yet

Experts told CNBC that problems caused by the Suez blockage will not immediately ease when the Ever Given is freed.

A handout picture released by the Suez Canal Authority on March 24, 2021 shows a part of the Taiwan-owned MV Ever Given (Evergreen), a 400-metre- (1,300-foot-) long and 59-metre wide vessel, lodged sideways and impeding all traffic across the waterway of Egypt’s Suez Canal.

Suez Canal Authority | AFP | Getty Images

Tim Huxley, director of Mandarin Shipping, said it will take “some time” for traffic that has built up to cross the narrow canal. And when those ships and tankers arrive at their destinations, ports will likely face congestion that will also take time to clear, he added.

This will take quite awhile for the whole supply chain to get back to normal and that’s gonna have an impact on manufacturers, retailers right across the board.

Tim Huxley

director, Mandarin Shipping

“You normally have about 50 or so ships a day going through the canal, obviously at the moment it’s about 300 ships backed up … this is an enormous traffic jam, which is at both ends of the canal,” he told CNBC’s “Street Signs Asia” on Monday.

“This will take quite awhile for the whole supply chain to get back to normal and that’s gonna have an impact on manufacturers, retailers right across the board,” said Huxley.

— CNBC’s Matt Clinch, Natasha Turak and Lori Ann LaRocco contributed to this report.

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