Thread by @mercoglianos

The latest update on #EVERGIVEN in the #Suez. To quote @ever_stucc, it is still stuck.

Efforts to pull her off on Friday failed. The tides are peaking on Mar 31/Apr 1. Rates for tankers nearly doubled.

SMIT has 2 tugs set to arrive on Mar 28.

gcaptain.com/shipping-rates…

US and Turkey have offered support.

Blockage may cost trade between $6 to $10B per week.

Oil rose 3% with tankers diverting around Africa from the Atlantic.

Impact will hit European manufacturing and car part suppliers.

SMIT announced that a crane will arrive this weekend to start removing containers. Modern container cranes can move about 1 box a minute. This will be much slower on a ship that carry nearly 20,000.

2004 incident w/tanker took 3 days to clear.

gcaptain.com/smit-start-sue…

Discussion about using a helicopter to offload containers. There are many issues associated with this. The US military examined this in the 1960s and found the containers were very unstable and pushed the max capacity of the helos, with some boxes too heavy.
Fly-in/Fly-off

One of the priorities is not just perishable and time sensitive cargo, but living cargo. Up to 10 vessels in the anchorages may have livestock on board. With the ships motionless, there is an issue of ventilation, water making, and limit supply of food.
gcaptain.com/sheep-livestoc…

As we ships divert around the Cape of Good Hope, adding up to 3,500 miles and 7 to 14 days to their voyages, the cost for the extra fuel and steaming will be borne by the consumer. Shipping companies are looking to add a sur charge for the diversion.

gcaptain.com/shipping-lines…

One of Evergreen's biggest competitors, "MSC expects this incident to have a very significant impact on the movement of containerized goods, disrupting supply chains beyond the existing challenges posed by the COVID-19 pandemic."

splash247.com/ships-reroute-…

CEO of Evergreen warned that this operation could take weeks. Hopes are resting on the Spring Tide, but getting assets to the canal before then is challenging.

49 containerships carrying 407,500 boxes were scheduled to pass through Suez this week.

splash247.com/shipping-makes…

What happens when the #Suez reopens?

“Once the log-jam is broken, major ports in Rotterdam, Antwerp, and Hamburg will be swamped...That congestion will have rolling effects further down the supply chain for months to come.”

marineinsight.com/shipping-news/…

Not just oil, but liquified natural gas is piling up in the anchorage south of #Suez. This provides fuel for European power plants and without it from the Middle East, Europe will have to look to other sources to meet its power needs.

tradewindsnews.com/gas/lng-carrie…

"Everything is connected. The trans-Pacific trade relies on availability of container equipment. The Suez crisis will keep much-needed box equipment out of circulation for an extended period. This will make equipment in Asia scarcer for U.S. importers."

freightwaves.com/news/suez-cana…

This FreightWaves Classics article provides an overview of the canal’s history and operations.

freightwaves.com/news/freightwa…

"The forecast for Tuesday, March 23, showed wind gusts of more than 40 miles per hour and sand storms sweeping through northern Egypt. Indeed, such weather is common in the Sinai desert at this time of year." They why did the pilots bring her in the #Suez?
bloomberg.com/news/articles/…

I did a quick video that discusses the morning #EverGiven was stuck and how the events transpired that morning.

Finally, in classic shipping style, #Evergreen has taken this moment to award a $2.6 Billion contract to Samsung Heavy Industries of Korea to build them 20 more Ultra Large Container Vessels.

They appear bullish on their prospects.

gcaptain.com/ever-givens-op…