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KAIRO, KOMPAS.com – Dozens of cargo ships carrying everything from oil to consumer goods have stalled in Egypt’s Suez Canal.
Companies are likely to have to divert their cargo ships across Africa if congestion in the Suez Canal exceeds 24 hours.
Container ship congestion in the Suez Canal was caused by a container ship that got stuck after being pushed by a strong gust of wind.
Reported Kompas.com Previously, the container ship that got stuck was called Ever Given, which is also called “Mega Ship”.
Also read: The Suez Canal is jammed, a large container ship obstructs the international trade route
Ever Given weighs 220,000 tons and is 400 meters long. This container ship got stuck near the southern end of the canal on Tuesday (3/23/2021).
Efforts continued through Wednesday (3/24/2021) to float Ever Given back as reported Reuters.
Several sources in the shipping sector said Reuters that congestion has disrupted regular transportation through the Suez Canal.
This channel is one of the most important shipping points in the world and the fastest sea route connecting Asia and Europe.
Also read: History of the Suez Canal
Commodity market intelligence organization Kpler said more than 20 tankers carrying crude oil and refined products were affected by the disruption.
The Suez Canal is also an important transportation route for tankers carrying liquefied natural gas (LNG).
A total of seven LNG tankers were trapped on Wednesday according to data obtained from the Refinitiv vessel tracking system.
Any shipping delays and shipping disruptions could have a direct impact on European LNG and gas prices.
Also read: Today in history: Construction of the Suez Canal begins
On the other hand, there are more than 13 container ships anchored around the Suez Canal while at least two others wait in the Mediterranean.
AP Moller Maersk, the world’s largest container shipping company, said seven of its ships had so far been affected by congestion in the Suez Canal.
The company added that up to four of the ships were trapped in the Suez Canal while the rest waited to enter the route.
“The next 24 hours will be critical in determining long-term impact,” said Chris Evans, international supply chain specialist at professional services firm Colliers.
Also read: Tano Ponggol to become Indonesia’s Suez Canal
“If there are major delays, the Cape of Good Hope (in South Africa) is likely to serve as an alternate route to keep things going,” Evans added.
Even before the Suez Canal incident, the shipping system had a bit of a “hit”.
The reason is that the delivery system has been disrupted by the corona virus pandemic, while the demand for retail products has exploded.
Also Read: Over 140 Years, Here Are 6 Interesting Facts About The Suez Canal
