Bloomberg Quicktake: Now published this video item, entitled “Suez Canal: Dozens of Ships Gridlocked Despite Efforts to Free Stuck Vessel” – below is their description.
Rescue teams are working to dislodge a giant vessel from the Suez Canal in an effort to get traffic moving again in one of the world’s most important waterways.
The Ever Given, a container ship longer than the Eiffel Tower that ran aground in the southern part of the canal in Egypt, is still stuck across the waterway despite efforts to release it with tugs and excavators. One port agent said earlier that traffic could resume by tomorrow, but the Suez Canal Authority hasn’t given a timetable.
The incident is a reminder of how much international trade is channeled through so-called chokepoints — geographically constrained waterways that include the Strait of Hormuz and Panama Canal. Dozens of vessels are already gridlocked at Suez and a lengthy halt could further stretch supply chains that have already been disrupted by the coronavirus pandemic.
“The Suez Canal blockage comes at a particularly unhelpful time,” said Greg Knowler, European editor at JOC Group, which is part of IHS Markit Ltd. “Even a two-day delay would further add to the supply chain disruption slowing the delivery of cargo to businesses across the U.K. and Europe.”
The 193-kilometer-long (120 miles) Suez Canal is among the most trafficked waterways in the world, used by tankers shipping crude from the Middle East to Europe and North America. About 12% of global trade and 8% of liquefied natural gas pass through the canal, as do around 1 million barrels of oil each day.
The disruption comes at a time when oil prices were already volatile. Crude surged above $70 a barrel earlier this month on Saudi production cuts, only to slump close to $60 this week due to setbacks in Europe’s coronavirus vaccine program. Brent crude rose 5.4% to $64.07 as of 4:26 p.m. in London.Bloomberg Quicktake: Now YouTube Channel
Got a comment? Leave your thoughts in the comments section, below. Please note comments are moderated before publication.