Suez Canal: crisis Suez Canal: crisis as UK of threatens £7bn Canal of everything … Suez crisis shortages
Fri, 26 Mar 2021 10:00:00 +0000
A toilet paper shortage is widely predicted to hit the UK but one expert said the Suez Canal blockage will lead to product shortages on all everyday household
A toilet paper shortage is widely predicted to hit the UK but one expert said the Suez Canal blockage will lead to product shortages on all everyday household items, telling the Mirror ‘basically anything you see in the stores’ will be affected
The skyscraper-sized cargo ship blocking the Suez Canal could lead to product shortages here, experts warn.
The stranded mega-vessel is holding-up an estimated £7billion worth of goods every day – or £290million for every hour it remains wedged.
It was feared that efforts to free it could take weeks.
It has led to more than 100 container ships queuing up, many with goods made in the Far East destined for Britain and the rest of Europe.
The 400-metre Ever Given, which is as long as the Empire State Building is tall, has been stuck in the canal like a “beached whale” since Tuesday.
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The vessel, one of the largest in the world, was packed with 20,000 lorry-sized containers.
Shoei Kisen, Ever Given’s Japanese owner, denied reports that it aimed to dislodge it by Saturday night, saying refloating efforts were ongoing.
The Suez Canal Authority said efforts to free the ship by tug would resume as soon as dredging operations at its bow to remove 20,000 cubic metres of sand are complete.
The ship is operated by Taiwanese company Evergreen Marine, whose name is on the side.
About 12% of all global trade passes along the Suez Canal, and around 30% of the world’s shipping containers.
Sam Chambers, editorial director at the shipping website Splash, said: “The knock-on effects are already being felt.
“We are seeing ships rerouting round the Cape of Good Hope.
That adds on 3,800 miles, typically another 12 days from Asia to Europe.
“Goods will be getting to their destination in a slower way, there is no two ways about it.
“Even when the ship is moved, there is only so much dock space in Felixstowe, or Southampton or Liverpool.
“There will be an avalanche of ships trying to get onto a certain amount of quayside.
“So there could be some shortages, but whether we in the UK notice that is another matter, it depends how long it lasts.”
There have even been claims that the blockage could cause a new toilet paper crisis.
According to news service Bloomberg, Suzano SA – a wood pulp firm – is struggling to find vessels to carry its products.
It comes just a year after supermarket shelves were stripped of toilet roll in a frenzy of panic buying just before the first lockdown.
Joanna Konings, a senior economist and trade expert at banking giant ING, said: “Containerised freight is what gets most goods to most shops.
“So the whole range of things that people see that are imported, could be in these containers.”
Impacts are also likely to be felt on UK and other global producers who rely on so-called “just in time” supply chains.
Car manufacturers, for instance, often do not hold enough semiconductors in stock, instead shipping them in just before they are needed.
Lars Jensen, a container shipping expert based in Denmark, said the transportation of everyday household items will be affected.
He said: “Basically anything you see in the stores.”
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Oil prices rose today amid concerns amid the impact of the blockage on supplies.
More than 30 oil tankers have been waiting on either side of the canal since Tuesday.
Shipping rates for fuel tankers nearly doubled.
There is still speculation about what caused the Ever Given to end up where it did.
The ship’s owners have blamed hig winds a the time.
The same vessel was reportedly involved in an accident in Hamburg in 2019 when it a ferry boat on the Elbe River.
Suez Canal: crisis Suez Canal: crisis
Fri, 26 Mar 2021 10:00:00 +0000
Seven tankers were diverted away from the Suez Canal on Friday after traffic was suspended through the waterway where a large container ship has been stuck
Seven tankers were diverted away from the Suez Canal on Friday after traffic was suspended through the waterway where a large container ship has been stuck since Tuesday.
Read more: Suez Canal: Rescue mission to recover ‘beached whale’ ship could take weeks
Three of the tankers are being diverted towards the longer route around the Cape of Good Hope, while most diverted ships originally signalled for Suez Canal are now headed elsewhere.
The 400-meters long Ever Given has been stuck in the canal since Tuesday and efforts are under way to free the vessel although the process could take weeks.
Analysts at Moody’s warned that even if the ship was freed in the next 48 hours, more tanker congestion and supply chain delays were now “inevitable”.
Daniel Harlid, a vice president at the ratings agency, said: “While the impact of the Suez canal blockage on individual sectors is hard to quantify, we expect Europe’s manufacturing, auto and auto suppliers to be most affected because they operate “just-in-time” supply chains.
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“This means they do not stockpile parts and only have enough on hand for a short period, and source components from Asian manufacturers.
Even if the situation is resolved within the next 48 hours, port congestion and further delays to an already constrained supply chain is inevitable.
Reeling from the blockage, shipping rates for oil product tankers have nearly doubled this week.
The suspension of traffic through the narrow channel linking Europe and Asia has deepened problems for shipping lines that were already facing delays in supplying goods.
Six liquefied natural gas (LNG) vessels are awaiting entry at either side of the canal while another has been stuck in the Canal since Tuesday, according to Kpler analyst Rebecca Chia.
“A total of 16 LNG vessels’ planned transit via the Suez Canal will be affected if the congestion persists until the end of this week,” Chia said.
Read more: Rapid build-up of tankers and laden vessels at blocked Suez Canal as alternatives are limited
A further 10 crude oil tankers are also awaiting entry to the strait, Kpler added, carrying 9.8m barrels of oil.
“There will be considerable delays in the loading schedule at Ras Laffan for the start of April due to the congestion.”
Copyright © 2021 CityAM.
– March 26, 2021
Suez Canal: crisis 2021 Suez Canal crisis threatens UK shortages of everything as £7bn of .