Suez Canal Blockage Causes Losses of Ksh 9.6B Daily.

The Suez Canal is entering day six of being blocked and the effects continue to be felt all across the globe. Experts say that more days of halted travel would be a major inconvenience but a week or more would be extremely catastrophic and would be very detrimental in the increase in the global crisis.

Lloyd’s List, one of the world’s oldest shipping news and intelligence journals, estimates that a total of $9.6B per day is being halted in ship traffic due to the blockage. About 12% of global trade passes through the canal, which connects the Mediterranean Sea to the Red sea and provides the shortest sea link between Asia and Europe.

An alternative route, around the Cape of Good Hope, on the South African route could take 2 weeks longer.

Of the 39.2M barrels of crude oil imported per day through seaborne methods, 1.74M barrels passed through the Suez Canal per day. This according to the research done by the Kplei firm in 2020.

Global crude oil prices rose by 6% after traffic through the canal was suspended. They mainly rose due to concerns over supply distribution. By Thursday, a total of 156 vessels were waiting in the canal route.

Shoei Kisen Kaisha, the owner of the large freight said it was trying to resolve the situation as soon as possible, but that dislodging the Ever Given was proving to be extremely difficult and was going to take time.

“We sincerely apologize for causing a great deal of worry to ships in the Suez canal and those planning to go through the canal,” Shoei said.

“There is already a shortage of equipment, of space, everything’s operating at a peak capacity. It’s already slowly melting down and this will just exacerbate it” said Anthony Fullbrook, president of OEC Groups North American region, a freight company.

Alternative ways of removing the stuck cardo ship are underway.

By Joy Ngoiri