Egyptian Authorities: "Suez Canal Congestion Fully Resolved, Normalized"... All Waiting Ships Have Passed

All 422 Waiting Ships Passed 5 Days After Stranded Ship Salvage
Egyptian Authorities Expected to Demand $1 Billion Compensation...Focus on Liability

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Hyun-woo] Egyptian authorities announced that the congestion in the Suez Canal has been completely cleared and ship traffic has returned to normal. After the stranded ship in the canal was salvaged, all waiting ships passed through the canal within five days, raising expectations that the global logistics crisis will also be resolved.

According to foreign media including The Wall Street Journal (WSJ) on the 4th (local time), the Suez Canal Authority (SCA) stated in a press release that "all ships waiting in the Suez Canal have passed through, and canal traffic has normalized." The SCA reported that all 422 ships waiting to pass through the canal due to the grounding of the container ship Ever Given on the 23rd of last month have passed through, with 85 ships passing in just one day. Considering that the average daily traffic in the Suez Canal is usually 40 to 50 ships, nearly twice the usual number of ships passed through to resolve the congestion.

Thus, the congestion in the Suez Canal, which lasted for five days after the salvage of the Ever Given, has been completely resolved, and the global logistics crisis is expected to be alleviated. The Suez Canal is an international logistics artery through which 14% of global maritime cargo and over 10% of maritime crude oil transportation pass. The grounding of the Ever Given caused a week-long closure of the canal, triggering a worldwide logistics crisis.

According to WSJ, data compiled by shipping information company Lloyd’s List estimated that the congestion in the Suez Canal delayed the transport of $9.6 billion (approximately 10.8 trillion KRW) worth of cargo daily between Asia and Europe. The Egyptian government, whose revenue from the Suez Canal accounts for 2% of its gross domestic product (GDP), is also estimated to have suffered significant losses. It is known that the government earned $5.7 billion during the 2019-2020 fiscal year. Earlier, Osama Rabie, head of the SCA, stated that the canal closure caused losses of $14 to $15 million per day.

With the congestion fully resolved, attention is shifting to the issue of liability. The Egyptian government has announced plans to claim an astronomical compensation of $1 billion related to this grounding incident, although the details such as the target of the claim have not yet been determined. Egyptian authorities are reportedly conducting an investigation into the accident vessel to clearly establish responsibility.

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