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Reuters
The global container crisis is exacerbated by ships stranded in the Suez Canal
Shipping industry sources said Thursday that the suspension of traffic through the Suez Canal exacerbates the problems of shipping companies facing interruptions and delays in supplying goods to consumers.
Container shipping companies that transport various retail products, from cell phones and clothing to bananas, have been suffering for months due to the Coronavirus pandemic and increased demand, increasing bottlenecks in the logistics sector. around the world.
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In the latest challenge, sources said more than 30 container ships were unable to navigate after the 400-meter long ship “Evergiven” ran aground in the Suez Canal as it disrupted transit traffic.
There are attempts to float the ship again, but one of the companies involved in those efforts said it could take weeks.
On Thursday, the Suez Canal Authority announced the suspension of maritime traffic until the float of the huge container ship is completed, which has hampered the flow of ships since Wednesday morning.
Authority spokesman George Safwat said that navigation traffic on the canal was temporarily suspended on Thursday, pending the completion of flotation work on the gigantic Panamanian container ship.
“At a time when supply chains are under pressure, a large container ship is closing one of the world’s main trade routes. As the Suez Canal Authority works to liberalize the canal, congestion increases and supplies stagnant production will affect it. ” said Joanna Konings, chief economist at ING Supply chains. “
Switzerland’s “MSC”, the world’s second-largest container shipping company, said that all major container ships were affected by the call in the Suez Canal.
He added that “MSC customers who are expecting shipments through the channel in the coming days should prepare for possible changes in plans.”
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Shipping industry sources said the impact on the transfer of goods from manufacturers in Asia to buyers in Europe may increase, depending on the extent of the continuing delays in the Suez Canal.
It is worth noting that data from Standard & Poor’s Global Platts Containers reported in recent weeks that the cost of shipping goods from Asia to the East Coast of the United States increased to more than $ 5,000 per 40-foot equivalent unit, compared to with $ 2,775 last March. and also increased shipping rates to the West Coast.
Source: Reuters.
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