In one week, the container ship halted $9 billion dollars in global trade
On March 23, a giant 200-foot-long container ship called the Ever Given got stuck in the Suez Canal, making a large impact on worldwide trade and attracting global attention. The Panamanian-flagged container ship was lodged against the width of the canal due to heavy winds that sent the ship off course, creating a huge traffic jam with container ships stuck on both sides and tons of goods such as food, furniture, clothes, car parts, and electronics stuck in route, NBC News stated.
The Suez Canal is one of the most vital marine trading routes in the world and is located in Egypt. 12% of all global trade goes through the Suez Canal and about $5.1 billion of goods come through the canal every day on the westbound side and $4.5 billion on the eastbound side, as claimed by CNBC. The Ever Given contained $9.6 billion of goods and was losing millions every day it was stuck.
Experts said to NBC News that this week-long jam could have long-lasting effects on global trade. But there’s a greater problem: the timing cut supplies short during a pandemic when such things are already in high demand.
“The timing of this is absolutely horrendous,” John Mangan, professor of marine transport and logistics at England’s Newcastle University said to NBC News. “The only thing worse, I guess, would be if it had happened maybe at Christmas time.”
This incident was at one point causing the ships to lose $400 million every hour it was stuck, as claimed by CNBC. However, on March 30, the cargo ship was finally forced free by a team of experts and the crucial canal opened back up. A fleet of tug boats used cables or placed themselves alongside the ship while sand and silt was removed from below to free it, allowing the stockpile of goods to finally reach their destinations.
However, because of the considerable negligence and the extent to which trade was halted, the Evergreen Marine Corp. has filed a lawsuit to sue the ship’s operators. They haven’t decided if this situation will be taken to court but if it is the ship won’t have the authority to leave Egypt.
Sources:
CNBC:
Business Insider:
https://www.businessinsider.com/the-suez-canal-blocked-and-closed-several-times-since-opening-2021-
NBC News:
https://www.nbcnews.com/news/world/suez-canal-open-again-impact-ever-given-blockage-will-be-n1262453