Effects of Ship Blocking the Suez Canal on World Trade
On 23 March 2021, on the Suez Canal, the ship Ever Given landed. It is noted that the ship is 400 metres long and as high as the Empire State Building. Officials of the Suez Canal Authority (SCA) say the rescue of the 224 thousand-ton ship is a complex problem. The SCA proposes the causes of the crash: 40 knots of wind, low visibility, poor navigation, and a sandstorm. World trade is under the influence of the ship blocking the Suez Canal.
Due to the ship's landfall Suez CanalTraffic stops completely. The estimated cost of world trade due to this event is estimated at $9.6 billion per day.
As of today, 165 ships await the rescue of Ever Given, who has been stranded to cross the canal.
Peter Berdowski, CEO of the Dutch company Boskalis, who is working to salvage the ship, said in a statement about Ever Given's dislocation that it could take days, or even weeks, depending on what was encountered.
Berdowski told Dutch TV on Wednesday that it was impossible to re-float the ship with its current load, saying that "it is impossible to pull the ship that it currently has." Eight tugs are employed to save the ship, while land is supported by work machines.
The rescue efforts, which are projected to continue for a long time, will greatly hamper world trade. Because of the Covid-19 pandemic, it is not too difficult to predict that the processes of the already problematic supply chain will be adversely affected. If we look at this situation in terms of Turkey, there seems to be delays in the raw materials coming from the far east due to the shipwreck. In the meantime, there will be disruptions in production and order delivery. With the completion of the rescue efforts, we envision the opening of insurance cases in a chain manner and the creation of huge costs, as İnovakademi. We also think that it is necessary to monitor developments in terms of foreign trade in terms of the accident, which will also adversely affect the world oil trade.
Details about the accident, which will be discussed for many years, can also be found at the following links:
https://edition.cnn.com/2021/03/25/middleeast/suez-canal-ship-blockage-intl-hnk/index.html
https://www.bloomberg.com/news/articles/2021-03-25/suez-snarl-seen-halting-9-6-billion-a-day-worth-of-ship-traffic
https://www.bbc.com/news/business-56533250
https://www.aljazeera.com/news/2021/3/25/beached-whale-ship-could-block-suez-canal-for-weeks
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