There was an incident that took place on March 23rd, 2021, where the skyscraper size ship size about 1,312 feet and 2,200-ton ship named Evergreen got stuck at the narrow-sized structure of the Suez Canal about 3.5 miles in Egypt. where it caused everyone’s imagination a nightmare at that time. It created the holdup of quite 360 ships both sides of the Suez Canal costing billions in delayed shipments between Asia and Europe.
The massive ship completely blocked the trade route which caused a major blow to the world trade through the sea that blocked about 12% of the export. Team with tugboats and other boats of dredgers are working tirelessly to free the ship or dislodge it, So, that it can export the goods throughout the world.
The crisis is another blow to the world as we are currently living in the pandemic, the blockade of trade route will cause economic trade, and economic recession, which will increase inflation of goods and services worldwide.
Impact:
The impact of the blockage of Evergreen ship in Egypt’s Suez Canal is that severe, not only it delayed the exports of goods throughout the world like in Asia and Europe, but it will also increase inflation worldwide. Meaning the clothes, electronics, and all the other products you order online including the gas prices will be higher.
The man-made Suez Canal about 120 miles, and acts as a key point connecting trade route between Asia and Europe. More than 200,000 or more ships pass through these canals as means of transportation, from oil and gas to the consumer goods all comes from this route of the Canal.
After the blockage of the ships, more than 360 ships get stuck in a dreadlock and many more will follow the trail as it will pile on like a Tetris game. Unfortunately, many of the remaining ships will have to change the different route and maybe it will result in longer delays in the transportations. The supply chains are disturbed because of the delay, the productions are halted not only due to the ongoing pandemic but also the blockage crises. The blockage has disrupted the product line of Asia and Europe affecting the oil and gas price, the more the delay more the prices of the gas will increase.
The Suez Canal acts as the gateway for the transportation of goods and services between the continents of Asia and Europe, nearly 1.23 billion tons of cargo have been shipped and represent 13% of cargo throughout the world.
The crude prices of the products like oil and gas have risen up to 5-10 %, meaning for every day or time the ship remains stuck the gas, the more the price will be risen because of supply and demand.
Latest Updates:
The Evergreen ship which has been stuck is now set free this Monday after being dislodged for over a week. The tug boats have been working day and night without any rest to make the ship afloat to the canal. The successful attempt to rescue the boat has been met with appraise and triumph of victory, the world can relax with the sigh of relief as the crisis has been avoided.
The vessel is now set afloat and has been set on the voyage at 3:00 PM at Egypt standard time. The navigation system will be in affect at approximately 6:00 PM, making way for the other ships to travel via canal and resuming their activity as it was in the schedule.
