As of today, March 26th, the Ever Given remains grounded in Egypt’s Suez Canal. This incident not only creates problems for Asia-Europe trade but will inevitably cause issues across global supply chains.
Container Imbalance
Ships heading to Asia, which have now been delayed for four days, are not able to return essential containers, both empty and filled with European exports, on schedule. The Container shortage in Asia has been an ongoing issue and the blocked canal has now further aggravated the situation.
Trans-Atlantic Service
Cargo moving through the Suez Canal is temporarily suspended. Ships bringing cargo to the U.S. East Coast via the Suez Canal have not moved, causing additional stress to an already maxed out Trans-Pacific service, not to mention cargo delays from the Middle East and India. Some carriers have begun to consider vessel diversions around Cape of Good Hope, which adds at least an additional week to the transit time from Asia to Europe.
Concerns Once Suez Canal is Reopened
As of this morning, over 200 ships are waiting to pass through the waterway in both directions. It is reported that dredgers are working to remove approximately 15,000 meters of sand and mud from around the front of the ship. Once the canal reopens, shippers are concerned that there will be an increase in structural blank sailings and congestion at major ports. These blank sailings are likely to exacerbate the capacity issues coming out of Asia and Europe and will further affect vessel reliability, which is already at a record low.
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