Suez Canal Update: A Global Supply Chain Disruption Due to EVER GIVEN Giant Vessel Aground Diagonally
Lets have some latest summaries over the Suez Canal Incident:
· Ship owners also finding alternative route through Africa killing over a week and spending million dollars fuels (Bloomberg-news)
· Some World leading manufacturer including (Caterpillar Inc. USA Largest) – thinking to air cargo option as well to off-set Suez Peril (Bloomberg-news)
· Suez Canal Authority (SCA) along with along with Ship operator Bernhard Schulte Shipmanagement (BSM) of the 20,388TEU Ever Given has been intensifying its facilitation to quick re-float by required dredging within next 48 hours.
(The Suez Canal is an artificial sea-level water-route/road of about 120 mile long in Egypt, connecting the Mediterranean Sea that connects to South-Western Europe etc. then to the Red Sea dividing Africa and Asia operated by Suez Canal Authority. The canal offers watercraft like Ship/Vessel/Tanker direct route between the North Atlantic and northern Indian oceans via the Mediterranean and Red seas, thus avoiding the South Atlantic and southern Indian oceans which reduce the journey distance about 8900 km from the Arabian Sea to London and also reduce the distance for Europe, USA, Maxico, Canda etc.)
Global supply chain has been critically disrupting due to giant ship Ever Given (Mother Vessel of 224,000-tonnes) aground diagonally on March 23, 2021 because of Dust Storm at Suez Canal that led suspension of all watercrafts (vessel/tanker) movement through this 120 mile long route. As a result a huge (over 200) container, Bulk, Even Large Break-Bulk, Oil/Chemical Vessels (Mother Vessels)/Tankers on longer queue/jam in this global important route. As a result supply chain as well as logistics globally going to experience about a week or more congestion or delay container delivery or on board either at transshipment (like Singapore, Colombo, Port Kelang etc.) or in final destination ports (like Ctg).
Roughly 30 per cent of the world's shipping container volume and about 12 per cent of global trade of all goods transit through the canal daily.
It is about 60,000 TEUs (Twenty Feet Equivalent Units) i.e. 80% of loaded containers are exported from Bangladesh monthly through Chattogram port and over 1,500 TEUs of Bangladeshi export containers headed for USA, Canada, Europe, Mexico etc. passing through this canal daily including a significant portion of bulk-import.
Thus, as soon as recover the vessel and help resuming the watercrafts via this canal to salvage the global supply chain quick recovery post covid impact - although second flow of covid-19 is going on globally - that might put another pressure to the global logistics and eventually supply chain.