Locus Profile picture
27 Mar, 16 tweets, 3 min read
Global trade suffered yet another setback after a giant container ship ‘Ever Given’ got stuck in the #SuezCanal thus blocking the way for other ships. Here’s everything you need to know about this enormous sea traffic jam. (1/n)
#SuezBLOCKED
Ever Given, operated by the Taiwanese company Evergreen Marine, is a 400m-long (approx.1,300 ft), 200,000-tonne vessel. It ran aground on Tuesday morning (March 23) amid high winds and a sandstorm that affected visibility. (2/n)
The Ever Given can carry more than 20,100 steel boxes, making it one of the largest container ships. These ships are longer than the Eiffel tower and bigger than three soccer fields. (3/n)
The approx. 120 mile long Suez Canal was inaugurated in 1869 and provides a crucial link for oil, natural gas, and cargo. It is Egypt's top foreign currency earner. (4/n)
This trade route, which connects the Mediterranean Sea to the Red Sea, facilitates direct shipping between Europe and Asia and has around 50 ships passing through it every day. This approximately accounts for 12% of world trade, according to reports. (5/n)
According to recent news, more than 150 large container ships, carrying oil and gas, grain, and other commodities are stuck at either end of the canal. This is one of the worst shipping jams ever. (6/n)
This backlog is making ships take detours via Africa which is both time-consuming and costly. Ships will now have to take the longer route around the Cape of Good Hope in South Africa, adding about 7-10 days to their journey, which could push up costs. (7/n)
Major companies, including Maersk and Hapag-Lloyd, are looking into rerouting their vessels that are stuck due to the Ever Given mishap. (8/n)
The first container ship to opt for the longer journey around the Cape of Good Hope was Ever Given's sister ship, the Ever Greet, which is also operated by the Taiwanese firm Evergreen Marine. (9/n)
Specialist salvage companies have been brought in to help refloat the ship, but experts suggest that it could take weeks if the vessel's containers need to be removed. (10/n)
This unforeseen situation comes on the back of already existing disruption due to the Covid-19. Trade volumes have already been hit by ship cancellation rates, container shortages, and fluctuating handling speeds at ports. (11/n)
This blockage is holding up an estimated $9.6bn (£7bn) of goods each day - or $400m an hour - according to data from Lloyd's List. (12/n)
According to German insurer Allianz, this blockade could potentially cost global trade $6 billion- $10 billion a week. Also, every additional week this jam continues it could result in 0.2 to 0.4 percentage points off the annual trade growth. (13/n)
According to reports, oil rose over 3% on Friday (March 26) as more than 30 oil tankers are now waiting on either side of the canal. (14/n)
The Ever Given incident is a rare event in the sea supply chain, and is causing major hiccups in global trade. But, situations like this take place very often in the on-ground supply chain, due to similar issues of low visibility and poor navigation. (15/n)
Effective routing, fleet visibility, and supply chain resilience are crucial for a smooth sailing supply chain, whether it’s in the sea or on the road. (16/n)

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