(3 minutes read)
· The closure of W Suez Canal in Egypt is casting shadows on the global merchandise trade
· According to Lloyd’s List, the shipping journal, the closure is costing an estimated US$ 9 billion loses. The estimate is being done based on the goods that would be passing through the artificially made waterways during the closure days
· Empirical evidences had it that on an average 70 ships pass through the canal that connects Mediterranean and Red Sea
The closure of the Suez Canal in Egypt is casting shadows on the global merchandise trade. According to Lloyd’s List, the shipping journal, the closure is costing an estimated US$ 9 billion loses. The estimate is being done based on the goods that would be passing through the artificially made waterways during the closure days. If the blockade is not set right, the estimated losses would surge further. Empirical evidence had it that on an average 70 ships pass through the canal that connects Mediterranean and Red Sea. A total of 4 million tons of cargo transit through the Canal on a day on an average.
As reported by www.trendsnafrica.com the other day, millions of tons of cargoes’ movements have been disrupted by the closure. Also, millions of tonnes of merchandise trade destined to various centers are lying in the warehouses. The cumulative impact would be the scarcity of goods globally, prices firming up and accumulation of losses in terms of higher cost towards inventory keeping, warehouses charges and a lot more. Over 10% of the world’s maritime trade passes through the Suez Canal.
Since the vessel is one of the largest cargo ships in the world, which can carry more than 20,000 containers, the mission to set right the blockade is proving to be a complicated mission. Several tugboats are being deployed to salvage the vessel ‘’Ever Given’’. The vessel is one of the world’s largest container ships, carrying 20,000 containers, and weighs more than 200, 000 tons. Despite the blockade, some of the ships, presumably smaller ones, could manage to pass through the canal, giving some respite to the situation.
If the blockade is not cleared in the next few days, experts feel that the shipping lines could be compelled to divert the route through the Southern tip of Africa adding to the time of voyage of the ships, thereby also adding to cost.
