Egypt: "Part of the hull of the container ship stranded in the Suez Canal has been refloated"

Accident Recovery Expected to Take More Than Two Days
55,000 Containers Moved Daily, Logistics Crisis Feared

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The Egyptian Canal Authority, which manages the Suez Canal, announced that it has succeeded in refloating part of the hull of the large container ship that ran aground and blocked the canal. However, it is expected to take more than two days to fully resolve the accident and resume navigation, raising concerns about a logistics crisis.

According to the AP and major foreign media on the 24th (local time), Egyptian authorities have reportedly succeeded in refloating part of the hull of the large container ship Ever Given, which ran aground in the Suez Canal. However, it is expected to take at least two more days to fully resolve the accident and resume navigation. Currently, about 100 vessels including oil tankers, liquefied natural gas (LNG) carriers, and container ships are anchored around the Suez Canal waiting for navigation to resume.

The Suez Canal is one of the key routes in the global supply chain, with about 30% of the world's container cargo and about 10% of daily oil shipments passing through it. Last year alone, an average of about 52 container ships per day, totaling approximately 19,000 vessels, transported cargo between Europe and Asia. Even now, about 55,000 containers are said to pass through daily. If the accident is resolved within two days as the Egyptian authorities expect, it is estimated that the delivery of more than 110,000 containers will be delayed.

However, if the accident recovery proceeds more slowly than expected, concerns are growing about the possibility of a logistics crisis. According to Egyptian authorities, sandstorms with speeds exceeding 50 meters per second are currently sweeping around the Suez Canal, and the weight of the grounded ship reaches 220,000 tons, making it difficult to pull it out from the sandbar.

News that oil tankers are immediately stuck caused international oil prices to surge. On this day, at the New York Mercantile Exchange (NYMEX), May delivery West Texas Intermediate (WTI) crude oil closed at $61.18 per barrel, up $3.42 (5.9%) from the previous session. WTI prices, which had temporarily dropped to the $57 level due to concerns about declining oil demand from Europe the day before, returned to the $60 level in just one day. At the London ICE Futures Exchange, May Brent crude oil traded sharply up 5.5% ($3.37) at $64.12 per barrel.

If the situation prolongs, concerns about a supply chain crisis due to rising freight costs are increasing. According to the Wall Street Journal (WSJ), on this day, Clarksons Platou Securities in the U.S. analyzed, "If the suspension of navigation in the Suez Canal is prolonged, shipping freight rates are expected to rise significantly," adding, "This could have a greater adverse effect amid the current delays in general cargo transportation and confusion at various ports caused by COVID-19 vaccine shipments."

This content was produced with the assistance of AI translation services.